DAVID H. ADAMS, Bankruptcy Judge
THIS MATTER came before the Court upon the Application For Authorization To Participate In Compromise filed by the Trustee, R. Clinton Stackhouse, Jr., and notice of same, and based upon the representations of the Trustee, the Court's file and the Court's familiarity with this case, it appears and the Court finds as follows:
1. This case was filed as a Chapter 11 case on July 5, 2001 and was converted to a Chapter 7 case on May 19, 2003.
2. R. Clinton Stackhouse, Jr. ("the Trustee") has been appointed Interim Trustee in this case and is presently serving.
3. The Chapter 11 portion of this case had a long history including adversary positions being taken by and between the Debtor, Unsecured Creditors Committee, the primary secured creditor which was Congress Financial Corporation (Congress), and landlords of various locations leased by the Debtor.
4. Those adversary positions included contested motions to sell the Debtor's assets, a suit by the Committee against Congress on various theories, and a motion to convert the case to a Chapter 7 case.
5. Eventually a settlement was reached based upon and contained in the following agreements and pleadings which are a part of the Court's record in this case, which are not included here in the interest of economy of time, space and paper:
1. The Settlement Stipulation filed with the Court by Congress on or about July 22, 2002;
2. The Order approving the Settlement entered on July 22, 2002 which incorporated a Settlement Agreement and a Creditors Trust Agreement.
6. The settlement provided for, among other things, the following:
1. Gradual liquidation and sale of saleable Trak locations and assets (in Chapter 11);
2. Creation of Creditors Trust for the benefit of unsecured creditors in the Chapter 11 to be funded by proceeds of the asset/location sales;
3. All disputes as described heretofore were to be resolved by this settlement and objections to the settlement were overruled;
4. The case was to be converted upon completion of the sale of Trak's assets;
5. Upon conversion, $20,000 was to be paid to the Chapter 7 Trustee with no conditions attached;
6. Payment to the Chapter 7 Trustee of an amount of up to $400,000, designated an "administrative carve", upon the conditions that the Trustee, for the Chapter 7 estate, would release Congress from any claims the estate may have against Congress with further terms and conditions as follow:
i. The Chapter 7 Trustee must agree to participate in the settlement within 30 days of conversion;
ii. Under certain conditions the $400,000 to be transferred to the Trustee could be used by Congress to buy administrative claims which would result in less money to the Trustee;
iii. Congress agreed not to share in any Chapter 7 administrative distribution unless and until other Chapter 11 administrative claimants have received a payment of 15% of their claims (which appears highly unlikely);
iv. The claims and liens of Congress will be fully allowed subject, of course, to the terms of the settlement.
7. During the Chapter 11, there were actual adjustments to the $400,000, otherwise earmarked for the Trustee if the Trustee accepted the settlement, so that the amount available at this point is $340,336.71, and the Trustee has received assurances that no further adjustments to this amount will be made.
8. The Trustee has complied with the 30 day deadline by indicating in writing his intention to accept the deal, subject to Bankruptcy Court approval and with the "administrative carve" to be $340,336.71 to be paid within 10 days of Bankruptcy Court approval.
9. The Trustee intends to handle the funds received as in any other Chapter 7 case, and interprets the term "administrative carve" as descriptive of where most of the fund will go according to the order in which things are paid in any Chapter 7 case, but not as limiting in any way the normal and customary handling of the case and these funds, by the Trustee, according to the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the local rules and customary practice, subject to the more explicit terms of the settlement.
10. The Trustee has given notice of his intention to participate in this settlement to all creditors listed in the Court's creditor matrix up to the date of this Notice, however, there is a minimal chance that certain creditors unpaid during the Chapter 11 case will not receive notice of this settlement because practical, logistical problems have been encountered filing conversion schedules. The Trustee recommends approval of the settlement despite this difficulty, for the following reasons:
1. Due to many prior notices and hearings, especially the notices leading up to the hearing on July 22, 2002, it was clear to any interested party that from that point on the case was in liquidation mode and, according to the Trustee's information most unpaid Chapter 11 debts would have occurred before that date, giving ample time for most unpaid Chapter 11 claimants to most assert their rights, file a Notice of Appearance, etc.;
2. The importance of promptly getting the significant sum into the estate, and accruing interest, outweighs any minor notice problem;
3. Most of the claims of this type clearly stand to benefit from the fund sought by the Trustee;
4. There may well be no creditors of this type who have not filed Notices of Appearances, etc.;
5. The Trustee is simply participating in a settlement previously approved by this Court.
11. Notice of the Trustee's intention to compromise this matter was sent to all creditors and parties in interest, listed on the Court's matrix, on June 10, 2003, allowing twenty (20) days to file an objection or request for hearing on the proposed compromise, and no objection or request for hearing was filed, timely or otherwise.
It is therefore ADJUDGED, ORDERED and DECREED that the authorization to participation by the Trustee in the compromise as described hereinabove is approved, and the Trustee is authorized to proceed as set forth above; and Congress will be released as described upon receipt of $340,336.71 which shall be paid by Congress to the Trustee within ten days of the date this order is entered; and
It is FURTHER ORDERED that copies of this order, when entered, be sent to R. Clinton Stackhouse, Jr., Esq., P.O. Box 3640, Norfolk, VA 23514; Cecelia Ann Weschler, Esq., 200 Granby Street, Room 625, Norfolk, VA 23510; Peter G. Zemanian, Esq., 1800 NationsBank Center, Norfolk, VA 23510; Douglas M. Foley, Esq., World Trade Center, Suite 9000, 101 West Main Street, Norfolk, VA 23510-1655; and to James T. Lloyd, Esq., 740 Duke Street, Suite 120, Norfolk, VA 23510.