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Philadelphia Newspapers, LLC v. Official Committee of Unsecured Creditors

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA


June 10, 2009

PHILADELPHIA NEWSPAPERS, LLC PLAINTIFF,
v.
OFFICIAL COMMITTEE OF UNSECURED CREDITORS ET AL., DEFENDANTS.

The opinion of the court was delivered by: Eduardo C. Robreno, J.

ORDER

AND NOW, this 10th day of June, 2009, it is hereby ORDERED that the Committee's Motion to Dismiss (doc. no. 14), and the Steering Group's Motion to Dismiss (doc. no. 15) are DENIED;

IT IS FURTHER ORDERED that the decision of the Bankruptcy Court is approved in part, and reversed in part. The decision of the Bankruptcy Court denying the appointment of special counsel to investigate the recording incident and litigate non-bankruptcy claims is AFFIRMED. The decision of the Bankruptcy Court denying the appointment of special counsel to advise the Debtors concerning the legal implications of the recording incident and its impact upon bankruptcy and non-bankruptcy issues is REVERSED;

IT IS FURTHER ORDERED that (1) the Bankruptcy Court shall appoint the law firm of Elliot Greenleaf & Siedzikowski, PC., pursuant to § 327(e), as special counsel to the Debtors for the purpose of representing the Debtors in connection with the Committee's investigation of the recording incident, and advising as to its impact on the plan on reorganization, defenses, subordination of claims, set offs, relative to bankruptcy and non-bankruptcy claims;*fn1 and (2) the appointment is subject to such terms and conditions as the Bankruptcy Court deems appropriate, including length of the retention and a detailed budget, including a cap on fees and expenses.

AND IT IS SO ORDERED.


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