A duo of bankruptcy judges jointly ordered a long-brewing feud over McKinsey & Co.’s conflict disclosures to mediation, a last resort before commencing a trial that could put several of the firm’s senior partners on the witness stand, WSJ Pro Bankruptcy reported. During a hastily scheduled status conference yesterday, Judge Kevin R. Huennekens of the U.S. Bankruptcy Court in Richmond, Va., said that he hoped a mediator would help hasten a resolution of the conflict between McKinsey and AlixPartners LLP founder Jay Alix, who has accused McKinsey of defrauding the courts by hiding significant conflicts of interest. Judge Huennekens is working in consultation with Judge David Jones of the U.S. Bankruptcy Court in Houston, who is presiding over another case in which McKinsey’s disclosures have been criticized by both Alix and the U.S. Trustee’s Office, a unit of the Justice Department that polices the bankruptcy system.
