The committee representing unsecured creditors and sex abuse claimants in the Diocese of Oakland, Calif.'s bankruptcy is challenging a proposal to defer some legal fees, saying it would give the diocese unfair leverage to impose an inequitable plan.
The diocese’s request is an attempt to cram down a reorganization plan while allowing it to accrue around $11 million in professional fees through March, the committee argued in a Wednesday filing in the US Bankruptcy Court for the Northern District of California.
The objections followed the diocese’s request earlier this month to amend interim compensation orders to defer 25% of the ...
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