The Bankruptcy Appellate Panel reversed an order of the bankruptcy court and remanded. The court held that the bankruptcy court erred in including the amount of a credit bid made by secured creditors as “moneys disbursed” under 11 U.S.C. §326(a) in calculating maximum allowable chapter 7 trustee compensation.
Hokulani Square, Inc. filed a petition for relief under chapter 11 in 2007. Bradley Tamm was appointed chapter 11 trustee. After two years of proceedings, the case was converted to chapter 7. The United States Trustee (UST) appointed Tamm to serve as chapter 7 trustee.
