The judge in Sabine Oil & Gas Corporation’s Chapter 11 bankruptcy case has been asked to review what Wells Fargo, the first lien agent, is characterizing as excessive requested professionals fees totaling approximately $8.3 million incurred as part of what it describes as the “scorched earth litigation tactics” of the five professional firms involved in the lawsuit.
Wells Fargo recently filed in its role as the first lien agent in Sabine Oil’s case in the U.S. Bankruptcy Court for the Southern District of New York its limited objection with bankruptcy judge Shelley Chapman, related to fees incurred by committee projections in connection with the committee’s investigation in the bankruptcy case. Wells Fargo stated that the committee’s authority to investigate and challenge the liens and claims of the prepetition secured parties at the expense of the debtors’ estates is not unlimited. According to Wells Fargo, in accordance with standard practice in complex chapter 11 cases, the debtors and the committee agreed in a heavily negotiated final cash collateral order to a cap on the fees and expenses that can be incurred by the committee in connection with its investigation.
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