McKinsey & Company agreed Tuesday to a million settlement with the Justice Department to resolve an investigation into allegations that it did not make required disclosures of its financial connections with other parties while working on bankruptcies.
The settlement arose from complaints that McKinsey had held back information about its investments and other deals in three cases that have entangled the powerful consulting company in a complicated court fight with a retired corporate turnaround specialist. The specialist, Jay Alix, has accused McKinsey of improperly profiting off the reorganizations it worked on.
Cliff White, director of the Office of the United States Trustee Program, the unit of the Justice Department that oversees the bankruptcy court system, said McKinsey had “failed to satisfy its obligations under bankruptcy law and demonstrated a lack of candor.”
He added, “If this conduct is repeated in future cases, we will seek even more far-reaching remedies.”
The settlement would end the Justice Department’s court-ordered mediation with McKinsey over its work for three bankrupt companies: Alpha Natural Resources, Westmoreland Coal and SunEdison. The agreement requires approval by bankruptcy judges in Richmond, Va.; Houston; and New York City.
McKinsey was also in mediation with Mr. Alix, who formed a small investment company that bought some of the companies’ unsecured debt as part of his efforts to expose what he has called improper conduct by McKinsey. The mediation was an unusual joint step ordered by three bankruptcy court judges intended to head off a full trial.
Mr. Alix said Tuesday that he and McKinsey had failed to reach an agreement and that he would press his claims in court, including that McKinsey improperly profited from stakes in bankrupt client companies held by its investment division, MIO Partners.
“This is not really the last stop on the train,” he said of the mediated settlement with the Justice Department. “McKinsey today is not in compliance with the United States bankruptcy code in any of these cases, and they need to be held accountable.”
Under the settlement, the department said it would no longer investigate McKinsey’s disclosures in the 14 bankruptcies the firm has advised since it began advising insolvent clients in 2001. But it reserved the right to file new complaints if it gets new information that McKinsey has committed fraud or is not “disinterested,” as required, in one or more of those cases.
A McKinsey spokeswoman said the firm had agreed to the settlement “in order to move forward and focus on serving its clients.”
She said the settlement did not require McKinsey to admit that its disclosures were insufficient or noncompliant, and did “not in any way constitute an admission of liability or misconduct by McKinsey or any of its employees, officers, directors or agents.”
The company said it had already taken steps to change its disclosure practices in response to guidance from the Office of the United States Trustee.
Bankruptcy law requires all professionals working on a case to disclose business relationships so the courts and other parties can watch for improper arrangements or movement of assets of the distressed companies.
McKinsey has recently provided information on some connections, but only after considerable prodding and sometimes only in a private meeting with the judge, rather than in open court.
Mr. Alix has accused McKinsey of using those connections to earn much more than its court-approved fees: He has filed pleadings with the courts claiming that McKinsey earned an additional million in SunEdison’s bankruptcy through a complicated series of accounting manipulations. He has also accused McKinsey of improperly earning a million profit by investing in Alpha’s secured debt while serving as Alpha’s adviser.
The settlement with the Justice Department does not cover those allegations, which were wider ranging than those brought by the Justice Department, and McKinsey has denied them.
Mr. Alix’s mediation with McKinsey was handled by the same mediator who helped McKinsey and the Justice Department reach their settlement, Judge Marvin Isgur of the bankruptcy court in Houston.
The Justice Department said the million from McKinsey was “one of the highest repayments made by a bankruptcy professional for alleged noncompliance with disclosure rules.” But the penalty is only about a third of the fees McKinsey has billed for while advising the three companies.
SunEdison, a builder of renewable energy projects, paid McKinsey million for bankruptcy work. Alpha Natural Resources, a coal company, paid about million. And Westmoreland Coal has billed about million so far. Westmoreland’s bankruptcy has not yet been settled, and McKinsey has not yet been approved to work on the case, much less been paid.
Each will get million for distribution to their creditors, whose recoveries will be improved. In cases where McKinsey itself was a creditor, it will not receive any new distributions, the Justice Department said.
The settlement was comparatively small in the corporate world, but in the niche of corporate bankruptcies, it was unusually large, said Lynn M. LoPucki, a law professor at the University of California, Los Angeles, who runs a bankruptcy database that includes fees and fee reductions.
“This is a different environment,” he said. “In this environment, they don’t take money away from the professionals.”B:
管家婆网络版服务器硬盘坏了【史】【蒂】【夫】【所】【说】【的】【烂】【摊】【子】，【指】【的】【不】【仅】【仅】【是】【托】【尼】【和】【奥】【巴】【代】【亚】【所】【造】【成】【的】【动】【静】【和】【破】【坏】，【更】【重】【要】【的】【是】【两】【人】【在】【战】【斗】【的】【时】【候】，【托】【尼】【和】【奥】【巴】【代】【亚】【都】【喊】【出】【了】【彼】【此】【的】【名】【字】，【当】【时】【周】【围】【那】【么】【多】【人】，【肯】【定】【有】【人】【听】【到】【的】。 “【这】【简】【单】，【我】【找】【罗】【德】【出】【面】【处】【理】【一】【下】【就】【好】【了】。”【托】【尼】【轻】【描】【淡】【写】【地】【摆】【摆】【手】，【没】【有】【把】【这】【件】【事】【放】【心】【上】。 【林】【森】【突】【然】【间】【觉】【得】【未】【来】【的】【战】
【盟】【主】？ 【鬼】【差】【居】【然】【把】【此】【人】【喊】【盟】【主】？ 【田】【易】【从】【短】【暂】【的】【震】【惊】【中】【反】【应】【了】【过】【来】，【可】【取】【而】【代】【之】【的】【却】【是】【更】【加】【巨】【大】【的】【震】【惊】。【身】【为】【鬼】【差】【从】【身】【份】【上】【来】【说】，【在】【普】【通】【人】【的】【眼】【中】【身】【份】【已】【经】【不】【低】。【能】【让】【他】【恭】【敬】【行】【礼】【的】【人】，【恐】【怕】【也】【是】【屈】【指】【可】【数】【的】【存】【在】。 【无】【极】【宫】【中】【掌】【握】【强】【大】【力】【量】【以】【及】【权】【力】【的】【真】【人】【们】【也】【许】【可】【以】，【西】【方】【极】【乐】【世】【界】【的】【大】【德】【高】【僧】【也】【可】【以】。 管家婆网络版服务器硬盘坏了【第】【二】【天】，【黄】【放】【见】【到】【许】【明】【伟】【后】，【把】【秦】【烟】【写】【好】【的】【大】【纲】【拿】【给】【他】【看】。 【许】【明】【伟】【看】【了】【两】【遍】，【觉】【得】【这】【个】【故】【事】【要】【是】【出】【版】，【肯】【定】【能】【赚】【到】【不】【少】【眼】【泪】，【当】【然】【还】【有】【钞】【票】。 【不】【过】… 【秦】【烟】【把】【这】【对】【苦】【命】【鸳】【鸯】【的】【结】【局】【写】【的】【是】【不】【是】【太】【凄】【惨】【了】？ 【华】【安】【出】【版】【社】【有】【负】【责】【青】【春】【文】【学】【出】【版】【的】【编】【辑】，【每】【天】【都】【能】【收】【到】【不】【少】【投】【稿】，【其】【中】【有】【公】【司】【投】【稿】，【还】【有】【个】【人】【投】
【水】【岚】【躺】【下】，【静】【静】【得】【看】【着】【灵】【珠】。 【她】【的】【皮】【肤】【白】【皙】，【在】【早】【晨】【橘】【色】【的】【阳】【光】【下】，【能】【看】【见】【脸】【色】【细】【小】【的】【可】【爱】【绒】【毛】。 【她】【内】【眼】【角】【两】【个】【对】【称】【的】【痣】【很】【特】【别】，【若】【不】【是】【灵】【珠】【的】【眼】【睛】【本】【身】【单】【纯】【天】【真】，【这】【两】【颗】【痣】【如】【果】【配】【上】【灵】【玉】【机】【灵】【的】【眼】【神】，【会】【显】【得】【邪】【魅】【又】【妖】【异】。 【她】【安】【静】【得】【呼】【吸】【着】，【眼】【珠】【在】【眼】【皮】【之】【下】【轻】【微】【转】【动】，【好】【像】【在】【做】【美】【梦】，【嘴】【角】【露】【出】【一】【丝】【沉】
【没】【有】【想】【到】【他】【刚】【向】【范】【冰】【晶】【汇】【报】【完】，【阿】【九】【和】【伍】【天】【就】【来】【了】。 【见】【到】【阿】【九】，【伍】【天】【和】【黄】【柱】【子】【似】【乎】【有】【话】【要】【说】，【范】【冰】【晶】【就】【没】【有】【留】【在】【原】【地】，【只】【是】【淡】【淡】【的】【吩】【咐】【了】【一】【句】，“【你】【们】【的】【事】【情】【弄】【清】【楚】【了】【之】【后】，【就】【回】【酒】【店】【找】【我】。” 【说】【完】，【她】【就】【和】【亚】【森】【离】【开】【了】。 【范】【冰】【晶】【一】【走】，【黄】【柱】【子】【就】【开】【始】【质】【问】【阿】【九】，“【喂】，【阿】【九】，【伍】【天】，【你】【们】【的】【手】【机】【是】【坏】【了】【还】
“【先】【生】【要】【买】【点】【海】【鲜】【吗】？【最】【近】【在】【打】【折】，【有】【优】【惠】【的】【哦】！” 【夜】【楚】【天】【带】【着】【陶】【妖】【妖】【随】【便】【兜】【转】【了】【两】【圈】，【便】【来】【到】【了】【人】【潮】【人】【海】【的】【鱼】【制】【品】【售】【卖】【区】，【那】【儿】【的】【推】【销】【员】【又】【过】【来】【给】【他】【们】【解】【释】【了】【一】【大】【堆】【产】【品】。 “【先】【生】，【我】【们】【这】【里】【的】【鱼】【制】【品】【都】【是】【出】【了】【名】【的】【好】【的】，【您】【看】【这】【里】【有】【生】【干】【的】【也】【有】【盐】【干】【的】，【煮】【干】【的】，【您】【要】【哪】【一】【种】？【还】【有】【这】【个】【瑚】【珊】【是】【腌】【的】，【也】【是】