(N.D. Ind. June 26, 2015)
The district court affirms the bankruptcy court's approval
of the attorney fee application. The law firm was retained by the
trustee to pursue a 11 U.S.C. § 363(n) claim against the
purchaser of the chapter 11 debtor's assets for colluding with
bidders to set the sale price. The defendant argued the award of
attorney fees was inappropriate because they were not incurred for
services "reasonably likely to benefit the debtor's
estate," as a secured creditor had a lien on the property sold
and thus should have recovered any difference between the sale
price and the actual value of the property sold. The court holds
that the recovery would be "after acquired property"
under § 552(a) and thus property of the estate. As such, the
attorney fees were incurred to benefit the debtor's estate.
Opinion below.
