The court entered a final decree closing 20 "Second Substantially Administered" Katerra-affiliated Chapter 11 cases, while keeping the Katerra Inc. lead case open to handle remaining estate administration, including matters tied to the closed and dissolved entities. The order preserves the plan administrator's ability to bring adversary proceedings and allows parties to seek reopening for cause, so the closure reduces the active case footprint without ending litigation or claims work entirely Final Decree Closing Certain Chapter 11 Cases.
The plan administrator, Daniel R. Williams of JS Held, sought the decree after the October 21, 2021 confirmation and October 29, 2021 effective date of Katerra's plan, citing substantial administration of the 20 entities and the cost of continued U.S. Trustee fee accrual. The motion also shows why the lead case remains relevant: the estates still had claims reconciliation, future claim objections, potential miscellaneous motions, and 32 adversary proceedings against a backdrop of 1,359 proofs of claim asserting more than $19.8 billion Motion for Final Decree.
The court entered an order on Jackson Walker fee-matter standing requiring any party-in-interest claiming standing or indispensable-party status in connection with potential return of Jackson Walker LLP compensation to file a notice by April 15, 2024 at 5:00 p.m. Jackson Walker and the U.S. Trustee may file briefs by May 3, 2024, and the court set a May 13, 2024 hearing to determine standing and indispensable-party status.
The order matters because it turns the Jackson Walker fee issue into a defined litigation track with exclusion consequences: parties that do not file the required notice risk being barred from later asserting standing or indispensable-party arguments in the fee-return proceedings. For professionals tracking Texas fee-review fallout across older cases, Katerra now has concrete participation deadlines and a scheduled merits gate rather than only an open-ended fee dispute.
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