Feder

James J. Feder, Examiner, and his accountants, Coopers & Lybrand (Coopers) filed an application for the payment of compensation and the reimbursement of expenses in connection with the Lazar bankruptcy. The bankruptcy court 1 awarded the Examiner only 22% of his requested fees and expenses and awarded Coopers less than 60% of its request. On appeal, the district court 2 increased the Examiner’s award to approximately 60% of his request, maintained the accountants’ award, and subordinated any payments to the debtors’ professionals to those awards. The Law Offices of Snipper, Wainer & Markoff (Snipper), debtors’ bankruptcy counsel, appeal the subordination and the Examiner’s and Coopers’ cross-appeal requesting 100% payment. We affirm the fee award and reverse on the issue of subordination.

1. BACKGROUND

On December 10, 1992, the bankruptcy court ordered the appointment of an examiner over the Chapter 11 estates of Gary and Divine Grace Lazar and their related corporate entities (hereafter the “debtors”). The debtors owned, operated and leased numerous self-service gas stations. On December 11th, the United States Trustee appointed James J. Feder as examiner. The Examiner later…