Judge Robert Drain, Overseer of Mega Bankruptcies, to Retire

U.S. Bankruptcy Judge Robert Drain, an acerbic jurist who oversaw high-profile reorganizations including those of Sears Holdings Corp. and Purdue Pharma LP, plans to retire next year.

Drain intends to step down on June 30, 2022, according to a statement. He joined the bench in the Southern District of New York in 2002 after a career in private practice, where he was a partner at the law firm of Paul, Weiss, Rifkind, Wharton & Garrison.

“It seemed like a good time for a change,” Drain said in an email, noting that he’ll be turning 65 next year and will have then been on the bench for more than 20 years.

Drain has for years been the lone bankruptcy judge in White Plains, New York, just north of New York City, giving rise to a legal quirk allowing troubled companies to ensure Drain would oversee their bankruptcies if they set up shop and file their paperwork in his venue. So-called forum shopping has at times drawn the ire of legal scholars and politicians alike.

As a referee of multibillion dollar bankruptcy cases, Drain has attained an almost-mythical status among restructuring professionals and investors who specialize in troubled companies. He’s known to lambaste lawyers for wasting his time and delivers lengthy rulings from the bench on key issues. Recently, he spoke nearly without pause for more than six hours while deconstructing his rationale for a decision.

Drain is not shy about criticizing lawyers that were ill-prepared, or their clients’ lack of understanding of the U.S. Bankruptcy Code. He once blamed rising fees in bankruptcy cases on hedge fund managers and other distressed debt investors and their lawyers.

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