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 ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.