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Trustee objects to Pacific Steel attorney

Mar 24, 2014 | 07:56 PM | Frank Haflich

Tags  bankruptcy attorney, Pacific Steel Casting, Binder & Malter, Frank Haflich


LOS ANGELES — The bankruptcy trustee for Pacific Steel Casting Co. has objected to the appointment of an attorney seeking to represent the company until certain issues are resolved.

The office of U.S. trustee Tracy Hope Davis is asking that the application by Santa Clara, Calif.-based law firm Binder & Malter LLP to represent Pacific Steel Casting “not be approved,” according to documents filed in U.S. Bankruptcy Court in Oakland, Calif.

Berkeley, Calif.-based Pacific Steel Casting filed for Chapter 11 protection from creditors March 10. The company, which claims to be the fourth-largest U.S. producer of steel castings, said the pressures of an impending $5.4-million settlement of a “wage-and-hour” class-action lawsuit and a “flood” of worker compensation claims due to a 2011 audit of employees by the U.S. Department of Homeland Security led to the bankruptcy filing (amm.com, March 12).

Neither the law firm nor a spokesman for the trustee could be reached for comment.

The trustee’s filing doesn’t accuse the law firm of any violations. But among issues that remain to be resolved, according to the court documents, are “any actual or potential conflicts of interest” between Pacific Steel Casting and Tri Pacific Inc., a Corte Madera, Calif.-based company that’s listed in other documents as owner of nearly 82.13 percent of Pacific Steel. Payments have been made by Tri Pacific to both the Binder law firm and Pacific Steel, according to the documents.




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