Prison Co. Plans Mediation Redo After Bankruptcy Judge’s Exit

A bankrupt prison healthcare company will seek to redo mediation that led to a creditor deal after the judge who brokered the talks admitted to a romantic relationship with an attorney involved in the negotiations.

Tehum Care Services Inc. and its unsecured creditors committee aim to tap retired Delaware Bankruptcy Judge Christopher S. Sontchi to oversee a second round of mediation related to prisoner malpractice claims, according to a filing Wednesday in the US Bankruptcy Court for the Southern District of Texas.

The company’s call to hire Sontchi—for $1,500 per hour—comes after the US Trustee’s office, the Justice Department’s bankruptcy ...