Milbank retains Enron role

Milbank Tweed Hadley & McCloy has seen off a challenge to its role as legal adviser to the creditors' committee in the Enron Corporation bankruptcy

The judge presiding over Enron's bankruptcy, Judge Arthur Gonzalez, dismissed a request by Enron creditor Exco Resources to prevent Milbank from handling the committee's case. Exco's lawyer John Nabors, a partner at Texas firm Gardere Wynne Sewell, argued that Milbank had been involved in some of Enron's controversial transactions. Exco is not on the 15-member official committee.
Judge Gonzalez gave this line of argument short shrift, saying that the request was “untimely” given that it was filed months after Milbank was retained. Milbank disclosed all relevant details of its work for Enron at the outset and has instructed Squire Sanders & Dempsey to step in if a conflict arises.
Milbank partner and co-chair of the financial restructuring group Luc Despins has maintained that the firm should continue to advise the committee and ultimately Judge Gonzalez agreed with the committee's opposition to Exco's motion. “The committee's choice should not be disturbed,” he commented.