Milbank Blocked From Representing Bankrupt Gymboree, U.S. Says (1)

International law firm Milbank, Tweed, Hadley & McCloy LLP should be barred from representing Gymboree in its bankruptcy case because the firm also represents potential adversaries, a federal bankruptcy watchdog said.

Milbank’s former and current representation of Bank of America and Goldman Sachs in other matters creates an impermissible conflict of interest, the U.S. Trustee said in a Feb. 12 court filing.

The firm risks not getting paid for any of the work it performed for the liquidating retailer since the Jan. 17 bankruptcy filing if the court rejects its employment application.

The U.S. Trustee—an arm of the Justice Department ...