In November 2018, the United States District Court for the District of Delaware issued an opinion reversing a decision by the United States Bankruptcy Court for the District of Delaware in order to allow the payment of unsecured post-petition fees of an indenture trustee. In Wilmington Trust Co. v. Tribune Media Co. (In re Tribune Media Co.), the District Court considered whether these unsecured claims are permissible under Sections 502(b) and 506 of the Bankruptcy Code and came to the conclusion that since they are not expressly disallowed under Section 506, the unsecured claims for post-petition fees should be allowed. While the Third Circuit has not previously opined on this question, this decision brings the District Court for the District of Delaware in line with the First Circuit, Second Circuit, Seventh Circuit, Ninth Circuit, and Eleventh Circuit, and protects indenture trustees representing unsecured noteholders. If you would like further information about this or any other matter, please feel free to contact any member of the Global Bank and Institutional Finance & Restructuring Group.
