In re Holly Marine Towing, Inc., No. 11-1787 (7th Cir. 2012)
Annotate this Case
Debtor, a company that operated a tug boat service, filed for Chapter 11 bankruptcy and the bankruptcy court converted the case to a Chapter 7 liquidation. The principals were going through a divorce, and each sought ownership of real property used to operate the business. They reached a settlement that divided $911,620 from the sale of the property. The principals each received $229,126; the bankruptcy estate received $458,252. The principals paid the bankruptcy attorneys $65,000 from their personal shares. A financial services firm, a creditor of the estate that provided financial consulting services during the Chapter 11 proceedings, objected to the payout to the attorneys. The bankruptcy court rejected the claim. The district court and Seventh Circuit affirmed, finding the settlement to be in the best interests of the estate.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.