McKinsey & Company faces a perilous fight in a Texas bankruptcy case

This case, which involves the bankruptcy of Colorado's Westmoreland Coal, Alix has a powerful ally: the United States Justice Department

At first glance, it didn’t look like a fair fight. On one side: an enormous and powerful global consulting company. On the other: the retired founder of a smaller turnaround firm who has become a thorn in the side of its larger rival.

But the brawl that is erupting in the Federal Bankruptcy Court in Houston has the potential to cause big problems for the consultancy McKinsey & Company. The courtroom fight hinges on whether McKinsey or its clients have hidden interests in a bankrupt coal company that the firm has been advising, a practice prohibited by federal laws meant to