How long have underwriters/investment bankers been singled out in the definition of disinterestedness?
1.A.Answer: Underwriters were first treated separately in the definition of disinterestedness in the amendments to the bankruptcy laws embodied in the Chandler Act of 1938. The existing language regarding investment bankers was introduced along with many other amendments to the bankruptcy laws in the Bankruptcy Code that was adopted in 1978. • Question: Have there been instances in which the debtor and the Bankruptcy Court have wanted a given investment bank to represent a debtor, but the investment bank was ultimately disqualified because of the arbitrary existing language in the Code? Answer: Yes. Significant instances exist in which the desire of a debtor and the decision of a Bankruptcy Court judge to hire an investment bank have been overturned as a result of the existing language in the Bankruptcy Code. A. Two examples follow: • 2.A.1. Eagle Picher. In re Eagle Picher Industries, 999 F.2d 969 (6th Cir. 1993) the Bankruptcy Court determined that although Goldman, Sachs was “techni
