District Court Upholds Procedures for Suspending a Panel Trustee
Panel trustee suspended for unfair, harsh, accusatory examination of debtors.
Judge Name - Do not use it.
Naomi Reice Buchwald
%1
Bankruptcy Watchdogs Say McKinsey Disclosures Are Inadequate
McKinsey & Co.’s role as confidential adviser to the world’s most influential companies is complicating its effort to win lucrative work with some of the most troubled, the Wall Street Journal reported today. The Justice Department recently objected to bids by McKinsey’s restructuring arm — Recovery & Transformation Services — to work on the chapter 11 cases of coal-mining firm Alpha Natural Resources Inc. and solar-project developer SunEdison Inc. The problem: McKinsey isn’t naming clients on its long list of business relationships that might create conflicts of interest. McKinsey said in court filings that it isn’t aware of any conflicts of interest, but that it may have worked, or currently works, with the bankrupt companies’ creditors, lenders, shareholders or others involved in the cases, all of whom could potentially have interests that are adverse to the companies now seeking the firm’s guidance. The two cases’ U.S. Trustees each separately criticized those statements as “vague and amorphous.” Without such disclosures, a judge can’t weigh whether a firm’s connections will keep it from being an unbiased advocate for its client, according to David Skeel, a University of Pennsylvania Law School professor. Court hearings to review the criticism are set for the coming weeks.
Volunteers Needed for Amicus Briefs in Ninth Circuit Rehearing on Power of BAPs
Ninth Circuit needs guidance from scholars on the status of bankruptcy appellate panels.
Judge Name - Do not use it.
Jay S. Bybee
Supreme Court Temporarily Ducks Case on Individuals’ Right to Sue
Showing violation of a federal statute might not itself entitle a consumer to sue.
Judge Name - Do not use it.
Supreme Court
U.S. Trustee Questions SunEdison’s Retention of Turnaround Consultant
U.S. Trustee William K. Harrington challenged SunEdison’s application to employ turnaround consultant McKinsey Recovery & Transformation Services in its chapter 11 case Thursday, telling a New York bankruptcy court that the government needs more information to determine if a possible conflict of interest could bar the hire, Law360 reported on Friday. Harrington said that the application to retain McKinsey doesn’t comply with disclosure requirements under the U.S. Bankruptcy Code and includes “numerous vague and amorphous connections to creditors and other major parties in interest.” Based on the current filings, Harrington said that the government cannot determine whether a potential conflict of interest exists.
Arbitration Properly Denied in Trustee’s Fraudulent Transfer Suit, Circuit Says
Denial of arbitration is not a ‘final order’ requiring district court action.
Judge Name - Do not use it.
Barry G. Silverman
Third Circuit Tries to Synthesize Illinois Law on Veil Piercing and Unjust Enrichment
Third Circuit relies on a Seventh Circuit opinion to understand Illinois law.
Judge Name - Do not use it.
Julio M. Fuentes
District Judge in Dallas Splits with Eleventh Circuit on Judicial Estoppel
Conversion to chapter 7 bars judicial estoppel on claim arising after filing.
Judge Name - Do not use it.
David C. Godbey
WARN Act Claims Entitled to Class Status
Arkansas district judge sides with workers on WARN claims from mass firings.
Judge Name - Do not use it.
J. Leon Holmes
New Fed Rules of Procedure Proposed
The U.S. Supreme Court on Thursday submitted to Congress proposed changes to the Federal Rules of Bankruptcy Procedure, including amendments to Bankruptcy Rules 1010, 1011, 2002, 3002.1, 7008, 7012, 7016, 9006, 9027, and 9033, and new Rule 1012. The amendments to the Federal Rules of Bankruptcy Procedure shall take effect on December 1, 2016, and shall govern in all proceedings in bankruptcy cases thereafter commenced.
