In re Wasatch Factoring, Inc.
UNPUBLISHED
Attorney appointed to represent corporate chapter 11 debtor filed an application for fees. There were no objections, and no complaints regarding attorney's work on behalf of debtor. However, the court concluded that attorney was not a "disinterested person," as required by 11 U.S.C. § 327(a) and defined by 11 U.S.C. § 101(13)(E), because he represented both debtor and its principals, which could result in conflicts of interest, especially in a bankruptcy. In addition, the court found counsel to have a conflict in fact, as the principals and debtor were defendants in litigation, in which principals were seeking indemnification from debtor. The court denied attorney's current application and set aside its prior order granting interim compensation.