Bankrupt Manhattan Hotel’s Creditors Oppose DLA Piper Employment

Junior creditors of the boutique Hudson Hotel in Manhattan urged a bankruptcy judge to deny the company’s request to hire DLA Piper LLP, saying there’s a conflict of interest.

DLA Piper is seeking to be appointed as special counsel to the Hudson Hotel but the firm previously advised the company’s largest creditor and pre-bankruptcy lender, Parkview Financial REIT LP, on transactions with Hudson, according to a Jan. 2 objection filed by a committee representing unsecured creditors in the US Bankruptcy Court for the District of Delaware.

The application also seeks to avoid the safeguards of bankruptcy law by engaging in ...