Giuliani-Owned Firms Represented Both Debtor And Creditor In Bankruptcy Proceeding

A pair of companies owned by Rudy Giuliani represented both a debtor and a creditor in a recently concluded bankruptcy proceeding, a potential conflict of interest that wasn't disclosed to the federal judge overseeing the case, records show. The matter could heighten pressures on Mr. Giuliani's presidential campaign to be more forthcoming about the candidate's stable of businesses, their clients and the services they provide.

In September 2005, a subsidiary of closely held Giuliani Partners LLC signed a consulting agreement with Delta Air Lines Inc. to provide restructuring advice during the carrier's bankruptcy reorganization, drawing more than $5 million in fees for the service. Then, in January 2006, a separate Giuliani Partners division -- Giuliani Security & Safety -- signed a $2 million consulting deal with Command Security Corp., a tiny provider of security-guard services that had been left with $1 million in unpaid bills when Delta and Northwest Airlines Corp. filed for bankruptcy-court protection in September 2005.

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