The federal judge presiding over bankruptcy proceedings for the Inquirer and Daily News yesterday scolded the lawyers for unsecured creditors for failing to involve the newspapers' lawyers in a probe of an unauthorized recording incident.
Expressing some frustration with both sides, Judge Jean K. FitzSimon ordered lawyers to give up their holiday weekend, if necessary, to share notes, documents and any other information related to the November 2008 incident - a meeting with publisher Brian Tierney that was recorded by one of the newspaper's senior lenders without consent of all people in the room as the law requires.
At the newspapers' request, FitzSimon had authorized an investigation of the incident, to be directed by Eckert Seamans Cherin & Mellott LLC, one of the law firms representing the unsecured creditors. It was clear, the judge said, that all lawyers involved in the bankruptcy case - representing the newspaper, its major lenders and unsecured creditors - were free to participate as they saw fit.
Instead, Eckert Seamans lawyer Robert A. Graci has conducted a series of private interviews with people who were at the November 2008 meeting. Eckert partner Gary M. Schildhorn said that Graci felt that it was the most effective way to finish the probe within a 60-day time frame.
The newspaper's lawyers were not informed or invited to the interviews, and as of yesterday's hearing, Eckert Seamans had not supplied any notes or other documents to the newspapers' lawyers.
"We know nothing more about this incident today than we did April 21st," said the newspaper's lead lawyer, Lawrence McMichael.
McMichael told the court that the company needed more information about the recording incident to complete a reorganization plan to be presented to creditors.
McMichael said that the newspapers hoped to finish the plan by week's end, but Tierney said afterward that his reorganization proposal was still several weeks away. *
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