5th Circ. Finds No Adams & Reese Conflict In AIPC Ch. 11

Law360, New York (March 29, 2012, 6:25 PM EDT) -- Saying the "totality of circumstances" determines whether conflicts exist when third parties pay bankruptcy retainers, the Fifth Circuit upheld a ruling Thursday that Adams & Reese LLP didn't have a disqualifying conflict of interest in American International Petroleum Corp.'s bankruptcy.

AIPC Liquidating Trustee Robbye R. Waldron had argued the firm should have to return its legal fees to AIPC's bankruptcy estate. He contended a conflict was created when AIPC creditor GCA Strategic Investment Fund Ltd. loaned the oil-and-gas company money to pay A&R's retainer, wiring the...
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