Bankrupt hand sanitizer company, 4E Brands North America, has decided to modify its court-approved liquidation plan. This new move will permit creditors to recover potential forfeited fees from the company’s previous attorneys at Jackson Walker LLP.
This recent ruling that allows the amendment of the liquidation plan has paved the way for junior creditors to be compensated if the court rules that Jackson Walker must return the fees they had already collected for 4E Brands North America.
In previous events, the US Trustee, a bankruptcy watchdog under the Justice Department, had requested last year that Jackson Walker give back the payments it had received during the 4E bankruptcy. This was among various other Chapter 11 cases in the US Bankruptcy Court.
The legal proceedings over the Texas-based firm’s fees have spanned over several bankruptcy instances, arousing questions over the payments amidst revelations of a romantic relationship between a judge and a lawyer involved in the case.
As the legal world watches closely, the outcome of this case will potentially set a precedent in cases related to the same legal and ethical issues.