Congoleum Bondholders Take Aim At Consultant

Law360, New York (April 5, 2007, 12:00 AM EDT) -- With Congoleum still languishing in Chapter 11 after years in bankruptcy, the roofing manufacturer’s bondholders are lashing out at Kenesis Group LLC, demanding that the consulting firm give back $1.5 million in fees due to its allegedly negligent behavior.

On Tuesday, the group filed suit in the U.S. Bankruptcy Court for the District of New Jersey, accusing Kenesis of breaching its fiduciary duty and failing to disclose numerous conflicts of interest.

Kenesis was retained to advise Congoleum on its prepackaged bankruptcy on the recommendation of law...
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