Latham Defends Steward Bankruptcy Effort Despite TRACO Concerns

Latham & Watkins LLP said the Justice Department’s bankruptcy watchdog has “no valid basis” to oppose its retention in Steward Health Care System LLC’s bankruptcy.

The firm’s filing comes after the US Trustee challenged the bankrupt hospital system’s request to bring Latham on as co-counsel to Weil Gotshal & Manges LLP in the Chapter 11 case.

“L&W is not challenging the adequacy of its proposed co-counsel’s representation of the Debtors but challenging the U.S. Trustee’s contention that L&W’s retention is unnecessary and unduly burdensome,” the firm said in a response filed Monday in the US Bankruptcy Court for the Southern ...