In re Tom's Foods, Inc. (05-40683)

Certain creditors objected to the final compensation application filed by the Chapter 11 debtor's counsel. The creditors contended that the debtor should have initially pursued a liquidation rather than trying to reorganize as a going concern. The creditors also contended that counsel had a conflict of interest in representing both the Chapter 11 debtor and the debtor's qualified pension and profit sharing plan. The court overruled the objections noting that counsel's efforts were primarily responsible for a sale price for debtor's assets that was twice the opening bid. The court also noted that counsel provided necessary and beneficial services to the debtor's senior management in dealing with its pension plan.

Thursday, April 6, 2006