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 McKinseys disclosures dont comply with the law, it shouldnt be compensated for the services it has already provided, he said.
The U.S. Trustee Program serves as the governments bankruptcy watchdog and is tasked with preserving the integrity of the system. W…
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