Alerts

Eighth Circuit Rules That Financial Advisor's Success Fee Be Paid From Recovery Obtained By Its Constituency

February 28, 2005

In an apparent case of first impression, the Eighth Circuit Court of Appeals in Official Committee of Unsecured Creditors v. Farmland Indus., Inc. (In re Farmland Indus., Inc.), 2005 WL 310075 (8th Cir. 2005) has affirmed the opinions of both the bankruptcy court and the Eighth Circuit Bankruptcy Appellate Panel ("BAP"), and ruled that the success fee earned by the financial advisor to an unsecured trade creditors' committee should be paid solely out of the trade creditors’ recovery.