The U.S. Trustee assigned to the Adeptus Health case filed with the U.S. Bankruptcy Court separate objections to the Company’s motions to retain DLA Piper LLP (US) as special counsel and Houlihan Lokey Capital as financial advisor and investment banker.
The Trustee asserts, “The United States Trustee objects to the Application because the work proposed to be performed by DLA Piper LLP (US) is work that should be performed by Debtor’s main bankruptcy counsel….Moreover, the Applicant cannot meet the more relaxed disinterestedness standard under section 327(e) due to the actual or potential conflicts resulting from the Applicant’s representation of the Debtors and Mr. Napolitano.”
The Houlihan Lokey Capital objection adds, “The United States Trustee objects to the Application because the Application does not provide for section 330 review of Houlihan Lokey Capital’s (the ‘Applicant’) fees and expenses. Approval of the Applicant’s $100,000 a month fee, $550,000 fee for delivery of a Valuation of the Debtors, and $150,000 non-refundable cash fee for Supplemental Services that may be requested, plus expense reimbursements under a section 328 standard would leave this Court little discretion to assess the Applicant’s work.”
In addition, “Finally, the United States Trustee requests that the Engagement Letter be modified to provide that Texas law controls and that this Court is the sole venue in which disputes arising from this employment may be determined.”
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