In Re Sidco, Inc.
Angelo v. Sidco, Inc. (In Re Sidco, Inc.)
Opinion
Opinion
Coyle, J.
On July 19, 1994, this Court heard oral argument for appellant United States Trustee’s (“UST”) appeal from Bankruptcy Judge Dorian’s authorization, pursuant to 11 U.S.C. § 327 , of Charles Lazaro (“Lazaro”) as bankruptcy counsel to debtor-in-possession SID-CO in its Chapter 11 bankruptcy. Upon consideration of the written and oral arguments, the Bankruptcy Court is affirmed for the following reasons.
I. BACKGROUND
On October 18, 1993, SIDCO filed a petition seeking reorganization under Chapter 11 of the Bankruptcy Code. Control of SIDCO (the business) was transferred to SIDCO (the debtor-in-possession), rather than to a Chapter 11 trustee. On November 18,1993, debt- or-in-possession filed an ex parte application for approval of employment of Charles Lazaro, accompanied by Lazaro’s declaration.
Lazaro admitted in paragraph 6 of his affidavit that he had previously represented Arnold Kaplan (“Kaplan”), the owner of 90% of SIDCO’s outstanding shares, in a variety of matters. These matters included Kaplan’s sale of the other 10% stock to Donald Glaze, and the drafting of various documents relating to certain businesses owned by Kaplan. Kaplan is also an unsecured creditor,…