U.S Trustee Fee Refund hearing

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U.S Trustee Fee Refund hearing
U.S. House Speaker Kevin McCarthy (R-CA) speaks with reporters about a looming shutdown of the U.S. government at the Capitol in Washington, U.S., September 29, 2023. REUTERS/Jonathan Ernst

In a move akin to the grand referee stepping into a heated game, the U.S. Supreme Court announced on Friday its intentions to delve into the controversial matter surrounding the Office of the U.S. Trustee’s claims. The crux? Whether fees paid by Chapter 11 debtors should be upheld during a period marked by an unconstitutional fee chart.

This high-stakes courtroom drama has John Q. Hammons Hotels & Resorts center stage. They’re awaiting a cool $2.5 million refund, a result of a Tenth Circuit ruling that deemed such a reimbursement the apt solution to the fee fiasco, as divulged in an order list released this past Friday.

U.S Trustee Fee Refund hearing : The Fee Turbulence Timeline

In 2017, a legislative windstorm altered the trustee fee schedule, aiming to pad the account backing the trustee initiative. This program primarily subsists on fees shelled out by Chapter 11 debtors.

This financial maneuver initially targeted the 88 districts utilizing the U.S. Trustee system. The U.S. Department of Justice, through fees levied on Chapter 11 debtors, principally funds this system. However, the alarm bells rang in early 2018 when the trustee fund balance plummeted, breaching the $200 million benchmark set by the law.