April 14, 2006
In a ruling reported on the front page of the April 11 New York Law Journal, “Decisions of Interest,” the United States District Court for the Southern District of New York affirmed a Bankruptcy Court ruling in the high-profile Adelphia bankruptcy case, which involved a series of motions brought by a disgruntled creditor faction, the Arahova Committee.
In a ruling reported on the front page of the April 11 New York Law Journal, “Decisions of Interest,” the United States District Court for the Southern District of New York affirmed a Bankruptcy Court ruling in the high-profile Adelphia bankruptcy case, which involved a series of motions brought by a disgruntled creditor faction, the Arahova Committee. The motions variously sought the appointment of a trustee, the termination of the Debtors' exclusivity periods, and a broad disqualification of Willkie from the case. The District Court has affirmed the Bankruptcy Court’s order to deny the motions except to the extent that the Bankruptcy Court adopted a previously self-imposed limitation that Willkie had placed on its role in certain intercreditor disputes. In this connection, the firm voluntarily undertook to remain neutral (in effect withdrawing as an advocate from certain limited aspects of the case) in favor of a facilitator role. The Bankruptcy Court's decision, affirmed by the District Court, essentially formalized that which Willkie had agreed to previously.
In his decision affirming the Bankruptcy Court’s order, Judge Shira A. Scheindlin wrote, “I affirm, largely because I see no reason to disturb the Bankruptcy Court’s factual findings that first, the Debtors’ professionals have maintained a level playing field and second, the relief requested by the Arahova Committee would make matters worse for all Debtors, including the Arahova Debtors.”
Willkie has represented Adelphia in its bankruptcy proceedings since their inception in 2002. Adelphia comprises approximately 230 legal entities, each of which is a debtor in the jointly administered proceedings. In this recent action, the Bankruptcy Court wrote that Willkie has “acquired an extraordinary expertise in Adelphia affairs,” and has “performed their duties in an exemplary manner.” The Willkie team handling this matter was led by partners Myron Trepper, Marc Abrams, Shelley Chapman, Roger Netzer and Brian O’Connor. The firm’s role was featured in an article in the January 26 edition of the New York Law Journal.