U.S. Trustee Crusade Against Indemnity and Exculpation Clauses in Financial Advisor Retention Agreements Yields Mixed Results

An admitted campaign by the Office of the United States Trustee to bar indemnity and exculpation provisions in retention agreements for financial advisors hired by trustees, debtors and committees is yielding some results in recent reported decisions. However, the attempt to generate a per se rule against a bankruptcy professional’s obtaining, as a term of his or her employment, indemnity or exculpation from the estate for his or her acts of negligence has been unsuccessful.
To read full story, click here

Recent Decisions Limit §1146(c) Relief

Section 1146(c) of the Code provides that delivery of an instrument of transfer (such as a bill of sale or deed) “under a plan confirmed under §1129 of this title, may not be taxed under any law imposing a stamp tax or similar tax.” In some jurisdictions, courts include in §363 sale orders entered in chapter 11 cases, preconfirmation, a provision that the sale is not subject to transfer taxes under §1146(c) because the sale is in contemplation of a plan.
To read full story, click here

Business Reorganization Committee News

ABI’s Business Reorganization Committee will present a program at the Winter Leadership Conference in Tucson, Ariz., entitled “Emerging Issues In Hospitality, Entertainment Venue and Gaming Bankruptcies.” Panelists include Rudy J. Cerone, McGlinchey Stafford PLLC, Douglas Draper, Heller Draper Hayden Patrick & Horn LLC, and Linda F. Cantor, Pachulski, Stang, Ziehl, Young & Jones PC. The program will be part of the committee’s meeting on Dec. 6, 2002, at 8:00 a.m. In light of recent filings, such as the Windsor Woodmont case (involving Colorado’s Black Hawk Casino), the program promises to be timely and informative. In addition, watch for the debut of the committee’s column, “News at 11,” in the December/January issue of the ABI Journal.