The court approved Chapter 7 Trustee Anne Elizabeth Burns’s retention of Reid Collins & Tsai LLP as special litigation counsel, effective June 4, 2026, according to the July 7 hearing minute entry. The firm will investigate and prosecute potential estate claims against lenders—including JPMorgan, Barclays, Fifth Third, Wilmington Trust, TBK Bank, Origin Bank and ACV Capital—as well as the debtors’ prepetition auditors and counsel.

Under the retention application, compensation escalates from 20% of gross recoveries before formal proceedings to 40% after expert disclosures. Reid Collins will advance most litigation expenses, while the estates must preserve at least $2 million from their share of recoveries for future costs. The approval gives the trustee a funded litigation pathway to monetize potential lender and professional-liability claims without bearing conventional hourly fees, making recoveries from those claims a more concrete component of the Chapter 7 estates’ creditor-return strategy.