Mountain Express trustee objects to independent directors

Chicago, May 8 – Mountain Express Oil Co. should not have appointment of independent directors as of the petition date ratified, according to an objection filed by the U.S. trustee for the Southern District of Texas Kevin M. Epstein in a filing made to the U.S. Bankruptcy Court for the Southern District of Texas.

The debtors filed a motion to ratify prepetition appointments of certain independent directors along with approving their fees and a corporate governance provision related to who can appoint replacements.

The trustee argues that the transaction was prepetition and therefore outside the jurisdiction of the court.

The Alpharetta, Ga.-based fuel distributor filed Chapter 11 bankruptcy on March 18 under case number 23-90147.

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