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Guidance on Distributions As 'Disbursements' and U.S. Trustee Fees

In a recent case from the Bankruptcy Court for the District of Delaware, In re Paragon Offshore PLC, the bankruptcy court provided guidance on whether a post-plan effective date litigation trust's distributions constituted disbursements subject to the U.S. Trustee fee "tax."

6 minute readDecember 01, 2021 at 12:09 AM
By
Francis J. Lawall
Marcy J. McLaughlin Smith
Guidance on Distributions As 'Disbursements' and U.S. Trustee Fees

Nowhere else is the old saying "you can't escape death and taxes" better exemplified than in Chapter 11. Under the Bankruptcy Code, debtors are subject to stringent reporting and fee requirements imposed by the Department of Justice and the Office of the U.S. Trustee.

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