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  5. 798 F.2d 645 (1986)
 

MATTER OF ARKANSAS CO., INC.

No. 85-5841.

798 F.2d 645 (1986)

In the Matter of ARKANSAS COMPANY, INC., a New York Corporation, Debtor. Appeal of BENENSON & SCHER, P.A., Attorneys for the Creditors Committee of Arkansas Co., Inc.

United States Court of Appeals, Third Circuit.

Decided August 13, 1986.

Attorney(s) appearing for the Case

Elliot Scher, Benenson & Scher, P.A., Millburn, N.J., pro se.

Novalyn L. Winfield, Hugh M. Leonard, Trustee, U.S. Dept. of Justice, Newark, N.J., for appellee.

Before GIBBONS, WEIS and SLOVITER, Circuit Judges.

Submitted Under Third Circuit Rule 12(6) July 24, 1986.

OPINION OF THE COURT

SLOVITER, Circuit Judge.

I.

Introduction

This case raises two issues. First, does the bankruptcy court have the power to grant retroactive approval of the employment of an attorney by a creditors committee in Chapter 11 bankruptcy proceedings? Second, if such power exists, what standard should govern the grant of retroactive approval? We hold that...

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