Heightened scrutiny on bankruptcy advisers’ conflict disclosures by the U.S. Trustee Program is sending a new and forceful message that current practices among some participants are likely to face challenges from the Justice Department and has already resulted in greater transparency in two chapter 11 cases, the Wall Street Journal reported. A judge in New York overseeing the Synergy Pharmaceuticals Inc. bankruptcy today will be asked to decide whether to approve Centerview Partners LLC as an adviser to the company on its reorganization. An objection last week from the U.S. Trustee citing “vague client confidentiality concerns” prompted Centerview yesterday to identify by name a connection it previously had sought to keep secret. (Subscription required.)
