By Emily Chasan
NEW YORK, May 20 (Reuters) - A U.S. bankruptcy judge on Wednesday allowed mall owner General Growth Properties Inc to hire two law firms to represent the company in its bankruptcy, despite an objection from the U.S. Trustee.
The U.S. Trustee, which oversees bankruptcy cases in New York, had objected to the company's request to hire both Weil Gotshal & Manges and Kirkland & Ellis, saying that there would be duplicative work and that it would be too expensive.
But Judge Allan Gropper said this was the 'extremely rare' type of case where two firms could be allowed to represent the bankrupt company. Weil Gotshal is dealing with the company's overarching issues, while Kirkland & Ellis is dealing largely with issues at General Growth's individual properties and projects at the lower level.
Judge Gropper said having lawyers to represent the two different levels of the company may actually be beneficial and that he did not expect the fees to be much greater than if just one law firm represented General Growth. But he said that the hiring of two law firms should not be a precedent for other cases.
'I wouldn't want any other debtor to think that it is a good idea in the future,' Gropper said.
General Growth, the second-largest U.S. mall owner, filed for bankruptcy last month in the biggest real estate failure in U.S. history.
The case is In re: General Growth Properties Inc, U.S. Bankruptcy Court, Southern District of New York, No. 09-11977.
(Reporting by Emily Chasan; Editing by Richard Chang) Keywords: GENERALGROWTH/LAWYERS (emily.chasan@thomsonreuters.com; +1 646 223 6114; Reuters Messaging: emily.chasan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, May 20 (Reuters) - A U.S. bankruptcy judge on Wednesday allowed mall owner General Growth Properties Inc to hire two law firms to represent the company in its bankruptcy, despite an objection from the U.S. Trustee.
The U.S. Trustee, which oversees bankruptcy cases in New York, had objected to the company's request to hire both Weil Gotshal & Manges and Kirkland & Ellis, saying that there would be duplicative work and that it would be too expensive.
But Judge Allan Gropper said this was the 'extremely rare' type of case where two firms could be allowed to represent the bankrupt company. Weil Gotshal is dealing with the company's overarching issues, while Kirkland & Ellis is dealing largely with issues at General Growth's individual properties and projects at the lower level.
Judge Gropper said having lawyers to represent the two different levels of the company may actually be beneficial and that he did not expect the fees to be much greater than if just one law firm represented General Growth. But he said that the hiring of two law firms should not be a precedent for other cases.
'I wouldn't want any other debtor to think that it is a good idea in the future,' Gropper said.
General Growth, the second-largest U.S. mall owner, filed for bankruptcy last month in the biggest real estate failure in U.S. history.
The case is In re: General Growth Properties Inc, U.S. Bankruptcy Court, Southern District of New York, No. 09-11977.
(Reporting by Emily Chasan; Editing by Richard Chang) Keywords: GENERALGROWTH/LAWYERS (emily.chasan@thomsonreuters.com; +1 646 223 6114; Reuters Messaging: emily.chasan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.