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In re Project Orange Associates, LLC

431 B.R. 363 (2010)

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In re Project Orange Associates, LLC

United States Bankruptcy Court for the Southern District of New York
431 B.R. 363 (2010)

Facts

General Electric (creditor) supplied gas turbines to Project Orange Associates, LLC (Project Orange) (debtor). A dispute over turbine maintenance led to a $4.1 million arbitration award for General Electric. Later, Project Orange filed for protection under Chapter 11 of the United States Bankruptcy Code. Confirmation of the arbitration award was stayed, the turbine dispute remained unresolved, and General Electric became Project Orange’s largest unsecured creditor. Project Orange sought to employ DLA Piper LLP as general bankruptcy counsel. The United States trustee objected to this choice because DLA Piper also provided ongoing legal representation to General Electric entities. DLA Piper retained Golenbock Eisenman Assor Bell & Peskoe LLP (Golenbock) as special counsel to handle matters in which a conflict of interest would prevent DLA Piper from adequately representing Project Orange. DLA Piper submitted its employment application to the bankruptcy court.

Rule of Law

Issue

Holding and Reasoning (Glenn, J.)

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