‘Girls Gone Wild’ Video Maker Says Attorney Does Not Have Conflict Of Interest

by Tara Arick on April 15, 2013 · 0 comments

in Corporate counsel issues

- From LexisNexis® Mealey’s™ Daily Legal News.

Bankrupt adult entertainment company GGW Brands LLC, the parent company of the producer of videos called “Girls Gone Wild,” on April 10 filed a brief in the U.S. Bankruptcy Court for the Central District of California contending that the attorney it seeks to permission to appoint does not pose a conflict of interest for the company (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

GGW Brands Inc., along with GGW Direct, GGW Events and GGW Magazine, filed for Chapter 11 bankruptcy on Feb. 27.

Conflict Alleged, Rebutted 

GGW contends that “the mere existence of a parent-subsidiary relationship does not amount to an actual conflict of interest,” as has been alleged by the U.S. trustee.

Furthermore, GGW maintains that in cases where a conflict of interest may exist, courts have favored a “wait and see” approach.

On March 21, the U.S. trustee filed a brief opposing GGW’s motion to appoint Robert M. Yaspan of the Law Offices of Robert M. Yaspan as bankruptcy counsel.

11 U.S. Code Section 101

The U.S. trustee argues that Yaspan was not a disinterested party as required by 11 U.S. Code Section 101(13). Rather, the U.S. trustee said, Yaspan was held on retainer by all the GGW entities involved in the bankruptcy.

Specifically, at the time GGW filed its petition, $ 17,000 of the retainers for both GGW Brands and GGW Direct remained untapped. Furthermore, $ 2,000 remained of the retainers for GGW Magazine and GGW Events, the U.S. trustee says.

Moreover, the U.S. trustee says he believed that based upon information provided at the initial debtor interview, the related debtors share office facilities as well as employees.

GGW is represented by Yaspan of the Law Offices of Robert M. Yaspan in Woodland Hills, Calif. The U.S. trustee, Peter C. Anderson, is represented by Dare Law of the Office of the U.S. Trustee in Los Angeles.

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