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Storm Aftermath Causes Scramble in New York Bankruptcy Community

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The U.S. Bankruptcy Court building in Lower Manhattan remains paralyzed in the aftermath of Hurricane Sandy, forcing a scramble by judges and lawyers to hold key hearings wherever they can find a courtroom, Dow Jones Newswires reported yesterday. The court, one of the country's bankruptcy epicenters, took the rare step yesterday of issuing an order allowing judges to go outside the Southern District of New York to hold hearings. The order cites "extraordinary damage and disruption," "widespread power and utility outages," and "extensive transportation problems" in the New York area. "It is currently unclear when the United States Bankruptcy Court in Manhattan will again be accessible," said the order, signed by Chief Judge Cecelia G. Morris. Judges are turning to open courthouses in places like Brooklyn and White Plains, N.Y., where the buildings fared better than the one downtown, to ensure that bankruptcy proceedings can go on.