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In re Golden Fleece Beverages, Inc.

21 B 12228
Attorneys filed application to be employed as a subchapter V chapter 11 debtor’s substitute counsel.  Their application included a request for approval of a postpetition retainer.  The U.S. Trustee objected, arguing that the Bankruptcy Code does not expressly provide for postpetition retainers.  HELD: Under the plain language of 11 U.S.C. §§ 328 and 363(b), which apply in all of chapter 11, including subchapter V, the court may authorize the debtor to use property of the estate outside the ordinary course of business to pay a postpetition retainer to its professionals.  In this case, the facts supported the use of § 363 to authorize a postpetition retainer, and the court approved the application.

Wednesday, November 24, 2021