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Randall Klein and Jacob Marshall Author Article for The Bankruptcy Strategist

May 4, 2018

Randall Klein, principal in the firm's Bankruptcy & Creditor's Rights group, and Jacob Marshall, associate in the firm's Bankruptcy & Creditor's Right group, recently co-authored an article for The Bankruptcy Strategist entitled "How the New UST Fee Schedule Is a Ticking Tax-Bomb for Middle Market Debtors".

 The article focuses on the dramatic UST fee price change and how the changes hurt revolving lenders and debtors. Previously, the quarterly UST fees were capped at $30,000. Beginning in 2018, however, the fees increased so that mid-sized debtors pay 1% of all disbursements, up to $250,000 every quarter per debtor. Because disbursements include applications to revolving loan facilities (even when the money is immediately reborrowed), it's possible for mid-sized debtors to accrue $1MM in annual fees.  The article explores how the new fees affect mid-sized debtors and middle market lenders and suggests how parties can adjust to this new "tax" on bankruptcy.

To read the full article, please click here.

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