Law 360 has recently reported that Energy XXI’s equity committee (representing the Company’s shareholders in its US bankruptcy proceedings) have applied to disqualify Conyers Dill & Pearman Ltd., which is representing the oil and gas company in its restructuring proceedings in Bermuda, arguing that the law firm did not disclose to the Texas bankruptcy court that it had previously represented company lenders.
The official committee representing Energy XXI equity security holders allege that the past representation presents an untenable conflict of interest that requires Conyers’ removal from the proceedings. The committee is also seeking an order to disqualify Conyers and force the firm “to disgorge any compensation already received”.
Conyers Dill & Pearman dispute the allegations and are opposing the application, as reported by Bankrupt Company News. Confers argue that “the Court should not disqualify Conyers from its representation of the Debtors as special Bermuda counsel because its disclosures are consistent with prevailing law and do not present any disqualifying conflict of interest….The Committee’s effort to suggest that Conyers’ March 2015 opinion expressed opinions on the validity, perfection or priority of liens simply misreads the opinion.” … Conyers submits that its previously narrow disclosure was based on its interpretation of Bermuda conflicts principles and was not intended nor designed to mislead any parties to this bankruptcy case. Neither disqualification nor disgorgements of fees are warranted given the facts and circumstances of this case, the disclosures nor the scope Conyers’ representation in the matters described in the Supplemental Declaration.”
The application has not yet been determined by the US Bankruptcy Court, and it represents just one of various skirmishes in Energy XXI’s bankruptcy and restructuring proceedings.
For more information, see: