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Expert Analysis

A Cautionary Tale Of Creditor Connections

Law360 (December 9, 2010, 3:19 PM EST) -- A recent memorandum opinion of the U.S. Bankruptcy Court for the District of Delaware serves as a cautionary tale, reminding professionals of the critical importance of fulsome disclosure of creditor connections and review of applicable rules of professional conduct in connection with committee engagements. The opinion specifically requires additional detail in professionals' disclosures with respect to the use of any other persons to solicit proxies from creditors, and may change the processes by which unsecured creditors committees are formed and select their professionals in Delaware bankruptcy cases....

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