In re: Holly Marine Towing, Inc.

Dist. Ct. did not err in affirming Bankruptcy Ct. order that had approved settlement and distribution of funds from sale of certain disputed property that had been owned by corporate debtor. While creditor opposed $65,000 that had been distributed to debtor's attorneys, creditor lacked standing to object to said payment where source of funds had come from two individuals, who also held claims to said property and had received portion of sale proceeds from said property. Moreover, because funds paid to attorneys were never assets of bankruptcy estate, priority scheme did not apply to said funds. Ct. further found that settlement, which allowed debtor's bankruptcy estate to receive only 50% of sale proceeds, was reasonable.