At a hearing in Wilmington, U.S. Bankruptcy Judge Christopher S. Sontchi agreed to bless the unopposed going concern sale to Platinum Partners after first grudgingly overruling the U.S. Trustee's objection to a global settlement between Glacial Energy and its official committee of unsecured creditors.

Judge Sontchi said that although he shared the trustee's concerns with the settlement, he would approve it in light of the facts in the case, namely that rejection of the pact threatened to derail a sale that was both necessary and ready to go.

"I'm a little troubled by this settlement," the judge said. "I don't like to be troubled by settlements, as they're generally a good idea."

The trustee challenged the settlement — which would establish a trust with up to $1.5 million to take care of the committee's professional fees and expenses, as well as nonordinary course administrative claims — saying it could create disparate treatment for administrative creditors.

Attorney Jane M. Leamy, representing the trustee, told the court that the deal also seemed "premature" since no information was presented about the size of the claims that would be settled.

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