U.S. Bankruptcy Court Grants Paul Hastings as Counsel for Miles Guo Chapter 11 Trustee

Following a hearing on August 1, the U.S. Bankruptcy Court in Connecticut issued two orders granting two previous applications filed by Luc A. Despins, including the application for the retention and approval of Paul Hastings LLP to serve as the counsel for Despins, the appointed trustee in Miles Guo’s Chapter 11 case.

Earlier, on July 12, Despins issued an application asking the court to authorize and approve the retention and employment of Paul Hastings LLP as his counsel, effective as of the date of appointment, July 8, 2022.

In the application, Despins stated that “he seeks to retain Paul Hastings as his attorney because of Paul Hastings’ extensive experience and recognized expertise in the field of financial restructuring”, and also for the reason that he “is also a partner of Paul Hastings and thus is intimately familiar with the experiences and expertise of Paul Hastings’ attorneys”; as of Paul Hastings’ counsel fee, Despins stated that “The hourly rates and corresponding rate structure Paul Hastings will use in the Chapter 11 Case are generally the same as the hourly rates and corresponding rate structure that Paul Hastings uses in other restructuring matters, as well as similar complex transactional and litigation matters whether in court or otherwise, regardless of whether a fee application is required and regardless of the location of the chapter 11 cases.”

In Despins Declaration, he believes that Paul Hastings has no connection with Miles, or PAX (an affiliated entity of PAG), the U.S.Trustee, any person employed in the office of the U.S. Trustee, or any other party with an actual or potential interest in the Chapter 11 Case or their respective attorneys or accountants; and neither Paul Hastings nor any of its attorneys are a creditor, equity security holder, or insider of Miles or his affiliates, has been, within two years before the Petition Date, a director, officer, or employee of Miles or his affiliates, or has any interest materially adverse to the interests of the Miles’ estate or any class of creditors or equity security holders by reason of any direct or indirect relationship to, connection with, or interest in Miles, or for any other reason. Therefore, Despins believes that Paul Hastings is a “disinterested person” within the meaning of section 101(14) of the Bankruptcy Code.

The fellow fighters of the Whistleblower Movement later pointed out that the overwhelming evidence of Paul Hastings’ non-disinterestedness contradicted the Despins Declaration. Miles has also expressed he was determined to find the “puppeteer” behind the case and how his Chapter 11 case would reveal to the world the Chinese Communist Party’s infiltration of the U.S. justice system.