23andMe Judge Sets Trust Terms, Creditors’ Role in Claim Process

23andMe’s bankruptcy judge approved an equity holder committee’s version of the administration trust agreement for the company’s wind-down plan, setting a $1.5 million professional fee budget while still giving the unsecured creditors’ committee a role in the claims reconciliation process.

Judge Brian C. Walsh of the US Bankruptcy Court for the Eastern District of Missouri said at a Thursday hearing that the equity committee’s budget proposal—disputed by the unsecured creditors’ committee, which sought $1.875 million—was stronger and efficient.

Walsh added that the unsecured creditors’ request to participate in claim reconciliation was neither unprecedented nor inappropriate, and that its representative would ...