4E Creditors in Line to Collect in Jackson Walker Fee Dispute

Bankrupt hand sanitizer company 4E Brands North America will modify its court-approved liquidation plan to allow creditors to recover fees potentially forfeited from its former lawyers at Jackson Walker LLP.

The Monday ruling to alter the plan clears the path for junior creditors to be paid if a judge decides the Texas law firm must return fees it already collected for its work for 4E. The Justice Department’s bankruptcy watchdog, the US Trustee, last year called on Jackson Walker to disgorge payments it earned in the 4E bankruptcy, among several other Chapter 11 cases, in the US Bankruptcy Court for ...