Bankrupt Philly Refinery’s Hiring of Kirkland Opposed by DOJ

The Justice Department is opposing Philadelphia Energy Solutions Inc.'s plans to hire Kirkland & Ellis LLP as bankruptcy counsel because the law firm also represents the oil company’s largest shareholders and largest creditors.

Bankruptcy counsel should not have an interest “materially adverse to the interest of the estate or of any class of creditors or equity security holders,” the U.S. Trustee, the DOJ bankruptcy watchdog, said in its Aug. 16 objection to the hiring of Kirkland. Kirkland’s duty to the equity holders and creditors show it’s not a “disinterested” party under the law, the trustee said in the filing at ...