MFA Submits Letter to U.S. Trustee on Revised Proposed Compensation Guidelines in Chapter 11 Cases

MFA previously submitted comments to the U.S. Trustee on its proposed guidelines for reviewing applications for compensation and reimbursement of expenses filed by attorneys in larger chapter 11 cases (“Proposed Guidelines”).  On November 2, the U.S. Trustee issued revised Proposed Guidelines, which cited and took into consideration many of MFA’s comments from its September 21 letter.  On November 23, MFA submitted comments to the U.S. Trustee’s revised Proposed Guidelines.  In the letter, MFA endorsed the U.S. Trustee’s goal to ensure that bankruptcy professional fees are subject to the same client-driven market forces, scrutiny, and accountability that apply in non-bankruptcy engagements.  MFA commented on enhancing disclosures with respect to provisions relating to the “blended hourly rate;” disclosure of pre-petition billing arrangements; special fee review entities; and conflicts co-counsel.