Case Summary:
Debtor's motion to appoint W.J. Baumann Associates, Ltd. as its accountant during the pendency of its chapter 11 case is granted. Fact that accounting firm was a prepetition creditor of debtor in the amount of $1,504.44 does not preclude it from employment by debtor on the basis of "disinterested" requirement of 11 U.S.C. § 327(a). Courts should examine such applications on a case-by-case basis. Here, the prepetition claim was very small -- comprising 6.25% of the total unsecured debt in the estate, the only objecting party was the U.S. Trustee, the creditors' committee supported the debtor's motion, and statutory purpose behind "disinterested" requirement is not hindered by this result in this case.
Statue/Rule References:
11 U.S.C. § 327(a) -- Employment of Professionals
11 U.S.C. § 1107(b) -- Professionals - "Disinterested" Requirement
Key Terms:
"Disinterested" Requirement – Professionals
Professionals -- Employment Of