In re: The Shorebank Corp., et al, 12 B 581, a chapter 11 case, the Court ruled that allegations of a conflict of interest are not enough to compel the U.S. Trustee to reconstitute the membership of a creditors’ committee. The movant must show a breach of fiduciary duties or that a change in membership is necessary to insure adequate representation of the creditors in the committee.
Bankruptcy Law Update
