The law firm and one of its clients involved in the Detroit bankruptcy had filed a statement in August, attacking a proposal from the mediators as ‘the product of agenda-driven, conflicted mediators who colluded with certain interested parties to benefit select favored creditors to the gross detriment of disfavored creditors and, remarkably, the city itself’.
False allegations
The two mediators are US District Judge Gerald Rosen and Eugene Driker who is the chief judge for the Eastern Court of Michigan. The judge presiding over the bankruptcy, Steven Rhodes, went on to strike the August filing from the record after saying that its allegations were ‘false’.
Tireless efforts
Kirkland & Ellis has now changed the nature of its comments, praising the ’tireless efforts of the mediators’. In a notice of settlement the firm wrote: ‘We are deeply sorry for the mistake we made and for any unfounded aspersions it may have cast on Chief Judge Rosen and the Drikers.’ The settlement which has just been agreed could speed up the resolution of issues surrounding Detroit’s bankruptcy. Source: ABA
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