M&G Bankruptcy Fee Award
An ad hoc group of 23 construction lienholders asserting over $230 million in liens against the unfinished M&G Corpus Christi chemical plant secured an award of $1.6 million in legal and financial advisory fees for making a substantial contribution to the bankruptcy case. Following M&G Resins USA, LLC’s 2017 Delaware bankruptcy—driven by design and technical issues, underestimated labor costs, and a dispute with its general contractor—the lienholder group, with Andrews Myers representing 14 members, organized promptly, retained Delaware counsel Morris James LLP and financial advisor Province, Inc., and undertook coordinated actions that benefited the entire estate. The group preserved mechanics lien rights, opposed detrimental sales and financing procedures, negotiated with prospective purchasers at auction, and helped structure plan and escrow procedures that enabled payment of lien claims. After a contested hearing, Judge Brendan Shannon found that the professionals “demonstrably and materially” facilitated reorganization by streamlining negotiations and averting a litigation logjam, including securing a $265 million lien reserve with a $32 million cushion. The court’s award recognizes the group’s role in clearing the path for a sale of the plant free and clear of mechanics’ liens, with Andrews Myers to date negotiating over $44 million in contractor lien settlements.
