In re Thrush Aircraft (19-10976)

The Debtor sought to employ counsel for special purpose under 11 U.S.C. § 327(e) to which the United States Trustee objected, claiming the proposed representation was over-broad and amounted to conducting the case.  The Court found that preparation of the Debtor’s schedules and statement of financial affairs as well as gathering required documents and attending the initial debtor interview amounted to conducting the case, and denied the application as to those acts.  The Court approved the employment as to general human resources and labor matters (WARN Act and FLSA), non-bankruptcy related outstanding and threatened liability lawsuits, and advising the Debtor’s bankruptcy counsel regarding previous efforts to work-out, negotiate, and resolve forbearance and other agreements with its primary secured lender.

Tuesday, March 31, 2020