Genesis Healthcare Flags Legal Fees as Threat to Bankruptcy Case

Genesis Healthcare warned that mounting fees from law firms working for an unsecured creditors’ committee and patient care representatives could push its Chapter 11 bankruptcy into administrative insolvency.

The fallen nursing home operator urged the US Bankruptcy Court for the Northern District of Texas on Tuesday to require the committee to provide a “clear delineation of responsibilities” between Proskauer Rose LLP and Stinson LLP to avoid duplicate work.

The committee’s professionals exhausted their $6 million budget in August alone, and Genesis projected similar fees for September and October, the company said in court papers.

“Absent additional information regarding their division ...