Tamm v. UST-United States Trustee (In Re Hokulani Square, Inc.)

OPINION

KOZINSKI, Circuit Judge:

In bankruptcy, it’s the trustee’s job to manage the estate. Often, this means liquidating all the estate’s assets and distributing the proceeds to creditors, shareholders and other interested parties. Some of the proceeds are awarded to the trustee as compensation, which is calculated based on the value of the assets he disburses. We address whether the trustee’s compensation may reflect the value of what is known as a “credit bid.”

FACTS

Hokulani Square, Inc., filed for bankruptcy in May 2007. Bradley Tamm was appointed as the chapter 7 trustee. One of Hokulani’s…