Tag: Special Counsel

Bankr. M.D.N.C.: In re NCOAT- Application for Fees as Special Counsel

Summary:

Previously, the bankruptcy court granted the Debtor’s Motion to Employ Jones and DJP (the “Special Counsel Motion”) for the “limited purposes” of representing the Debtor “with respect to such corporate and securities matters as may be requested.” The Special Counsel Motion disclosed the fact that DJP was prepetition counsel to the Debtor and was owed a prepetition debt, but did not state the amount owed, which was in excess of $500,000. The Debtor asserted in the Special Counsel Motion that since special counsel employed under Section 327(e) of the Bankruptcy Code are not subject to the same strict disinterestedness standards as general bankruptcy counsel employed under Section 327(a), the existence of such a relationship and a prepetition debt did not disqualify DJP from representing the Debtor as special counsel.… Read More

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