In Re Qintex Entertainment, Inc., Debtor. Robert Halmi, Sr. v. Qintex Entertainment, Inc.

Robert Halmi appeals the district court’s affirmance of the bankruptcy court’s decision disallowing his claim for administrative fees and expenses. We affirm.

I. BACKGROUND

Halmi was a director and shareholder of Qintex Entertainment Inc. (“QEI”). Additionally, pursuant to an employment agreement signed in April 1988, Halmi produced TV programs for QEI. The agreement required Halmi to devote his “full time and best efforts to his duties under the Agreement.” He was prohibited from committing to projects on QEI’s behalf without first receiving written approval and from working on projects for himself or others. In return, Halmi received a salary, production fees, office, staff, and reimbursement for certain expenses. The agreement also contained a put option that required QEI to buy all of Halmi’s stock in QEI if certain conditions were met. The relevant condition required that Halmi not voluntarily terminate his employment before April 1, 1990.

In October 1989, for reasons unrelated to the agreement, QEI filed for relief under Chapter 11 of the Bankruptcy Code. QEI then sought to reduce its expenditures; to this end, it was suggested that Halmi’s salary and staff be cut.…