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In re Kobe Real Estate LLC

In re Kobe Real Estate LLC

Ruling
Debtor LLC could not employ attorney who was not disinterested due to representation of debtor's principals.
Procedural posture

A chapter 11 debtor submitted an application to employ an attorney and law firm under Fed. R. Bankr. P. 2014(a) and 11 U.S.C.S. § 327(a). The United States Trustee (UST) objected on the grounds that the application failed to disclose representation of the debtor's principals, which might prevent the attorney from qualifying as disinterested under 11 U.S.C.S. § 101(14). In addition, the UST raised an issue regarding the source of the retainer.

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Commercial opinion summary, case decided on August 31, 2011 , LexisNexis #0911-108