US Trustee Objects to Otterbourg, Steindler’s Retention in Value City Bankruptcy

Yesterday, the United States Trustee filed an objection to the application by the Official Committee of Unsecured Creditors in the Value City Holdings, Inc. bankruptcy cases to retain Otterbourg, Steindler, Houston & Rosen, P.C. as committee counsel.  The US Trustee notes that Otterbourg disclosed certain representations of adverse interests in the cases and argues that such conflicts will limit Otterbourg’s role in the cases so significantly as to limit its ability to “meaningfully represent the Committee.”  While Otterbourg has suggested that the situation can be ameliorated by conflicts counsel, the US Trustee argues that the conflicting interests are too significant for this solution to be acceptable.

Download a copy of the Otterbourg retention application and the US Trustee’s objection here.