Saturday, June 16, 2012

Dewey & LeBoeuf: The Trouble with Tribbles

The docket in Dewey & LeBoeuf's Chapter 11 proceedings is starting to look like the classic Star Trek episode, The Trouble with Tribbles. 

Tribbles are little furry animals that purr a sound so relaxing that even Vulcans find it soothing.  As wikipedia explains: The "trouble" with the tribbles is that they reproduce far too quickly and are capable of eating a planet barren if their breeding is not controlled; in the words of Chief Medical Officer Dr. McCoy, "they are born pregnant" and threaten to consume all the onboard supplies.

The Dewey docket invokes memories of this episode because it is riddled with retention applications seeking to employ professionals to work on the case.  Yesterday, a motion was filed for an order establishing procedures for interim compensation, and then several motions were filed on behalf of a variety of professionals whose services are purportedly needed to clean up the mess Dewey left behind when it collapsed.

Will we see objections from the U.S. Trustee's office?  Maybe.  On the one hand, the Department of Justice recently expressed a desire to more closely monitor compensation that comes off the top of bankruptcy estates, and depletes the pool of assets available for distribution to creditors and other stakeholders.  On the other hand, the U.S. Trustee's office appointed two committees in Dewey's Chapter 11 proceedings.

Will somebody file a motion to convert the case to a Chapter 7 liquidation?  People seem to be sold on the position that the Chapter 11 proceedings are necessary.  I'm not.  I welcome related inquiries.

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