The U.S. Trustee, overseer of the nation’s bankruptcy system, faces additional questions from a Republican member of the House Judiciary committee about the watchdog’s policing of disclosures made by McKinsey & Co., an adviser in chapter 11 cases, the Wall Street Journal reported. In a second letter to Clifford J. White III, director of the U.S. Trustee Program, Rep. Andy Biggs (R-Ariz.) said that he remained concerned about the Trustee’s enforcement of disclosure rules after White responded to previous questions submitted in July. Among the new information Biggs is seeking from the Trustee, a unit of the Justice Department, is a description of the remedies it can take against companies that “routinely violate” the disclosure rules. Biggs also asked the Trustee for a list of closed bankruptcy cases in which it had objected to McKinsey’s disclosures.
