Barry M. Klayman and Mark E. Felger ()
In In re Molycorp, Case No. 15-11357 (CSS) (Bankr. D. Del. Jan. 5), U.S. Bankruptcy Judge Christopher S. Sontchi of the District of Delaware held that absent specific language in a debtor-in-possession (DIP) financing order, a carve-out for a fixed dollar amount for professional fees does not serve as a cap on the amount of fees to which a professional may be entitled once a Chapter 11 plan is confirmed. Unless the holder of a particular claim has agreed to a different treatment, a fundamental statutory requirement of the Bankruptcy Code is that allowed professionals’ fees are administrative expenses that need to be paid in full under any confirmed plan.
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