Vinson & Elkins LLP has been disqualified from representing wood-pellet manufacturer Enviva Inc. in its bankruptcy proceedings. The ruling, handed down by Judge Brian F. Kenney of the US Bankruptcy Court for the Eastern District of Virginia, cited a conflict of interest. The firm’s concurrent representation of Riverstone Investment Group LLC, Enviva’s largest equity holder, in unrelated matters was deemed incompatible with its duties in the Chapter 11 case.
This decision is a setback for Enviva, which entered Chapter 11 bankruptcy protection in March as reported by Bloomberg Law. The company is the world’s largest supplier of wood pellets used in electricity generation. The ruling is seen as a victory for the US Trustee’s office, which had challenged the firm’s retention due to potential conflicts.
For further details on the court’s decision, you can read the full ruling on Bloomberg Law.