Justice Department Chides McKinsey in Another Bankruptcy Case
Trustee says disclosures the firm filed to support its application to advise Westmoreland Coal are neither transparent nor complete
A Justice Department official asked a federal judge to withhold payments to McKinsey & Co. for its work advising a bankrupt Colorado coal miner, adding another voice to a chorus of criticism faulting how the firm discloses potential conflicts of interest.
In a Friday filing with the U.S. Bankruptcy Court in Houston, Acting U.S. Trustee Henry Hobbs Jr. said disclosures McKinsey filed to support its application to advise Westmoreland Coal Co. are neither transparent nor complete. Because McKinsey’s disclosures don’t comply...