Vol 21 (2024) - Issue 2

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In a Chapter 15 Case, ‘Attorneys’-Eyes-Only’ Designation Rejected Where It Would Interfere with Foreign Representative’s Duties and Confidentiality is Preserved

Synopsis
In In re Historic & Trophy Buildings Fund FCP-SIF ('Historic'), the Bankruptcy Court for the Southern District of New York (the 'Court') granted in part and denied in part a motion (the 'Motion') for a protective order filed by multiple non-debtor party recipients of discovery requests (the 'Movants') served by the courtappointed liquidator (the 'Liquidator') in underlying Luxembourg liquidation proceedings and the foreign representative of the debtor in the chapter 15 case. The Movants sought to include an 'attorneys'-eyes-only' restriction on certain confidential material, which would bar the transmittal of such materials to the foreign representative, the Luxembourg court, and Luxembourg prosecution officials. Finding that the confidentiality of the information would be maintained under Luxembourg law, the Court concluded that such 'attorneys'-eyes-only' designation was not appropriate because it would unreasonably interfere with the Liquidator's duties and the purposes of chapter 15.