ABI Committee News
"Establishing an Evidentiary Record Illustrating a 'Substantial Contribution'"
In keeping with its narrow construction of what constitutes “substantial contribution” under § 503(b) of the Bankruptcy Code, the U.S. Court of Appeals for the Third Circuit in In re Tropicana Entertainment LLC recently upheld the denial of a noteholder group’s application for reimbursement of $2.3 million in fees and expenses. Although the decision does not diverge from the Third Circuit’s prior precedent, it reaffirmed the court’s narrow application of § 503(b) substantial contribution claims. Specifically, the Tropicana decision illustrated the need for establishing a robust evidentiary record to support a claim for reimbursement of fees and expenses pursuant to § 503(b).