THE ETHICS OF REPRESENTING DEBTORS AND CREDITORS IN BANKRUPTCY

⁸² In re Four Seasons Marine & Cycle, Inc., 263 B.R. 764 (Bankr. E.D. Tex. 2001); In re Nelco, Ltd., 264 B.R. 790 (Bankr. E.D. Va. 1999).

⁸³See cases cited at In re Schipper, 109 B.R. 832, 835 (Bankr. N.D. Ill. 1989) and In re Wilde Horse Enterprises, Inc., 136 B.R. 830, 842 (Bankr. C.D. Cal. 1991); see In re Hampton Hotel Investors, L.P., 270

B.R.

346 (Bankr. S.D.N.Y. 2001)(DIP principal collusive agreements with bidders). ⁸⁴18 U.S.C. § 154; In re Crestview Funeral Home, Inc., 287 B.R. 832, 837-38 (Bankr. D. N.M. 2002) (auctioneer's fees ordered disgorged since he and his contract employees bought property at the auction); In re Allied Gaming Management, Inc., 209 B.R. 201 (Bankr. W.D. La. 1997)(estate accountant cannot participate in ownership of company acquiring debtor under plan); In re Saver, 191 B.R. 402 (Bankr. D.

Neb. 1995)(DIP counsel purchase of house after creditor foreclosed); In re Rahe, 178 B.R. 801 (Bankr. D. Neb. 1995)(unethical and criminal for trustee's counsel to purchase estate property); In re Q.P.S., Inc., 99

B.R. 843 (Bankr. W.D. Tenn. 1989)(DIP's accountant prohibited from buying estate car); In re Exennium, 23 B.R. 782 (9th Cir. BAP 1982), rev'd. on other grounds 715 F.2d 1401 (9^th Cir. 1993)(former DIP counsel barred from purchasing lease from trustee after conversion). Creditors committee members may acquire estate assets, however, as long as they do not abuse inside informtion in doing so. In re Rickel & Assoc., Inc., 272 B.R. 74 (Bankr. S.D.N.Y. 2002). ⁸⁵See Pepper v. Litton, 308 U.S. 295 (1939); In re Simon Transportation Services, Inc., 292 B.R. 207 (Bankr. D. Utah 2003) (insider entity as stalking-horse; inadequate information improperly gave it competitive advantage over other bidders); In re Performance Nutrition, Inc., 239 B.R. 93 (Bankr. N.D. Tex. 1999); Western World Funding, 52 B.R. 743 (Bankr. D. Nev. 1985) aff'd. in relevant part 985 F.2d 1021

(9th Cir. 1993); In re Guglielmo, 30 B.R. 102 (Bankr. N.D. La. 1983).

⁸⁶Fulton State Bank v. Schipper (In re Schipper), 933 F.2d 513 (7th Cir. 1991).

⁸⁷933 F.2d at 516.

⁸⁸Tenn-Fla Partners v. First Union Nat. Bank of Fla., 229 B.R. 720 (W.D. Tenn. 1999)(sale under plan at price insufficient to pay creditors fully, re-sale post-confirmation at higher price benefitting ony equity; serious interest of second buyer hidden during case); In re Simon Transportation Services, Inc., 292 B.R. 207 (Bankr. D. Utah 2003) (inadequate notice of assets being sold; mentioned but with no reference to substantial value); In re Wilde Horse Enterprises, Inc., 136 B.R. 830 (Bankr. C.D. Cal. 1991)(failure to disclose sale was to insider); Matter of Halux, Inc., 665 F.2d 213 (8th Cir. 1981)(breach of duty to lessor whose equipment was sold without notice); In re Vallejo, 77 B.R. 365 (Bankr. D. P.R. 1987)(sales without court approval); In re Frankel, 77 B.R. 401 (Bankr. W.D.N.Y. 1987)(sale of secured inventory on credit without required secured creditor approval); In re Wells, 71 B.R. 554 (Bankr. N.D. Ohio 1987); In re Ford, 36 B.R. 501 (Bankr. W.D. Ky. 1983).

⁸⁹ In re Simon Transportation Services, Inc., 292 B.R. 207 (Bankr. D. Utah 2003); In re Wilde Horse Enterprises, Inc., 136 B.R. 830 (Bankr. C.D. Cal. 1991), and cases cited therein. ⁹⁰Id. ⁹¹U.S. v. Rosen, 130 F.3d 5 (1^st Cir. 1997). ⁹²In re Continental Air Lines, Inc., 780 F.2d 1223 (5th Cir. 1986); In re Lionel Corp., 722 F.2d 1063 (2d Cir. 1983); In re Walter, 83 B.R. 14 (9th Cir. BAP 1988); In re Office Products of America, Inc., 136

B.R. 983 (Bankr. W.D. Tex. 1992). ⁹³In re Big Rivers Elec. Corp., 233 B.R. 768, 785-87 (Bankr. W.D. Ky. 1999). ⁹⁴See In re Perez, 30 F.3d 1209 (9th Cir. 1994); In re DN Associates, 3 F.3d 512 (1st Cir. 1993); In re Bush Industries, Inc., 315 B.R. 292 (Bankr. W.D.N.Y. 2004); In re Microwave Products of America, Inc.,

102 B.R. 666 (Bankr. W.D. Tenn. 1989); In re Jorgensen, 66 B.R. 104, 109 (9th Cir. BAP 1986)(interpreting requirement that plan be in good faith).