© 2016 The Texas Lawbook.
By Mark Curriden
(Sept. 29) – The federal judge in the Midstates Petroleum bankruptcy in Houston agreed to accept the exploration and production company’s billion-dollar restructuring plan Wednesday, but the judge said he did not approve of the legal tactics employed by lawyers for the creditors committee.
U.S. Chief Bankruptcy Judge David Jones of the Southern District of Texas said Wednesday that he blessed the debt-for-equity swap settlement reached this week by Oklahoma-based Midstates and its creditors.
But then, Judge Jones blasted lawyers with Squire Patton Boggs, who represent the unsecured creditors committee, for making false allegations of misconduct or fraud against Midstates and its outside counsel, according to lawyers familiar with the case and the specialized news media outlet Debtwire.
Debtwire, which is widely viewed within the bankruptcy community as one of the most reliable sources of information and news, quotes Judge Jones as telling lawyers for Squire Patton Boggs that they have “a lot of growing up to do.”
Lawyers for Squire Patton Boggs initially asked Judge Jones to look critically upon the settlement proposal because it was based on false or fraudulent information, according to Debtwire, which is a subscription-based business publication.
Squire Patton Boggs lawyers in previous hearings argued that Midstates executives and the debtor’s outside counsel, Kirkland & Ellis, were not being fully forthright with the judge.
On Wednesday, lawyers involved in the bankruptcy say the Squire Patton Boggs lawyers reversed course and apologized for their earlier statements and conduct.
But Judge Jones, according to lawyers familiar with the case and a report by Debtwire, was not satisfied.
“You don’t have a skill-set that will let you talk your way out of this,” Debtwire quotes Judge Jones as saying in the courtroom Wednesday. “You were wrong. Try to learn a lesson out of this, because if it happens again – and your performance in this court will be known to every judge in the Southern District. If it happens again, there’s an unfortunate result in store for you.”
Debtwire reports that Judge Jones told the lawyers that millions of dollars were spent in the case “attributable to you not listening to me.
“The process doesn’t work if I can’t believe you, and right now, I don’t believe anything that your firm does,” the judge said.
By contrast, Judge Jones praised the legal work of the lawyers representing Midstates, including Kirkland & Ellis, Jackson Walker and financial adviser Evercore Partners.
For complete coverage and in-depth details about the Midstates bankruptcy, we recommend that you subscribe to Debtwire at www.debtwire.com/info.
© 2016 The Texas Lawbook. Content of The Texas Lawbook is controlled and protected by specific licensing agreements with our subscribers and under federal copyright laws. Any distribution of this content without the consent of The Texas Lawbook is prohibited.
If you see any inaccuracy in any article in The Texas Lawbook, please contact us. Our goal is content that is 100% true and accurate. Thank you.