5th Circuit Reverses, Remands; Creditor May Claim Fees From Debtor's Gas Pipeline

NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Dec. 31 reversed a district court's decision and held that a creditor's rights to fees related to a gas pipeline sold by a debtor company are covenants that "run with the land"; therefore, the case was remanded for further proceedings (Newco Energy v. Energytec Inc [In Re: Energytec Inc], No. 12-41162, Chapter 11, 5th Cir.; 2013 U.S. App. LEXIS 25872).

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