Tag: 506(b)

E.D.N.C.: Summitbridge v. Faison- No Unsecured Claim for Attorneys Fees for Under Secured Creditor

Summary:

In a Chapter 11 case, Summitbridge held a secured (but under secured) claim, which was satisfied, pursuant to the confirmation order, by tender of the collateral. Summitbridge then filed an additional unsecured, nonpriority claim for it attorneys fees, pursuant to its promissory note, in the amount of 15% of the outstanding indebtness, totaling more than $300,000. The bankruptcy court disallowed this unsecured claim.

In affirming, the district court recognized the line of cases that “reasoned that claims for post-petition attorneys’ fees are contingent, unliquidated claims which are not precluded by Section 502 and are thus allowable. See In re 804 Congress, L.L.C. Read More

Tagged with: ,

Bankr. E.D.N.C.: In re Bate Land & Timber, L.L.C.- Equitable Reduction in Attorney’s Fees

Summary:

In a long-running case, of which this is the fourth opinion from the court, the Debtor and Bankruptcy administrator objected to the attorney’s fees sought by Bate Land Company (“BLC”). The Court held that BLC was an over secured creditor under 11 U.S.C. § 506(b).

The Debtor, however, first contended that the Note provided for attorney’s fees to BLC only in the event of a default and that, since the bankruptcy was filed during the 10-day grace period after the initial missed payment, there had been not default. The Court, however, held that the contract “specifically refers to the failure to make a payment as a default, and does not condition recovery of attorneys’ fees on the expiration of the cure period or a declaration of default.… Read More

Tagged with: , ,
Top