Bankruptcy

A Code Head-Scratcher

By Stephen Lubben

From a retention application in Lehman,

By this Application, the Debtors seek entry of an order, pursuant to section 327(e) of the Bankruptcy Code, authorizing the employment and retention of KBT&F as special counsel to the Debtors, to perform necessary legal services pertaining to the Debtors? chapter 11 cases . . . (emphasis added).

And section 327(e) of the Code, which provides

(e) The trustee [or debtor, in chapter 11], with the court?s approval, may employ, for a specified special purpose, other than to represent the trustee [or debtor] in conducting the case, an attorney that has represented the debtor, if in the best interest of the estate, and if such attorney does not represent or hold any interest adverse to the debtor or to the estate with respect to the matter on which such attorney is to be employed. (emphasis added). 

Full post as published by Credit Slips on August 23, 2010 (boomark / email).