Article: Triple indemnity; Firms caught in crossfire between investment bankers and bankruptcy trustees.(firms filing for bankruptcy)

Three metro Detroit companies going through Chapter 11 bankruptcy are in the crossfire of a precedent-setting legal battle between court trustees and investment bankers.

Trustees want to hold financial professionals to higher levels of liability, and investment bankers are strongly resisting.

Local companies caught in the debate are Troy-based Kmart Corp. (NYSE: KM); Troy-based Oxford Automotive Inc.; and Mishawaka, Ind.-based National Steel Corp., the parent company of Downriver steel giant Great Lakes Steel.

In each case, U.S. trustees have challenged requests from investment bankers who sought court approval for broad protections from ...

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