Vinson & Elkins LLP’s second attempt to continue as bankruptcy counsel for wood-pellet manufacturer Enviva Inc. has been thwarted. The firm had set up new protocols to address potential conflicts of interest, but these measures proved insufficient in the eyes of Judge Brian F. Kenney of the US Bankruptcy Court for the Eastern District of Virginia. In an opinion released Tuesday, Judge Kenney reaffirmed his earlier decision, deeming the firm not disinterested.
Initially ousted in May over conflicts arising from its representation of Enviva’s largest equity holder, Riverstone Investment Group LLC, in non-bankruptcy matters, Vinson & Elkins hoped that their revised ethical wall would allow them to stay on the case. However, the judge’s latest decision underscores the stringent requirements for disinterestedness in bankruptcy proceedings, a factor that legal professionals must heed closely amidst such high-stakes corporate bankruptcies.
For further reading, the full decision can be accessed here, and the initial May ruling is detailed here.