One of the most problematic roles banks play in the bankruptcy labyrinth is as financial advisers, and observers say Bankers Trust New York Corp. soon may face a conflict in its dealings with the ailing Grand Union Co.

Bankers Trust and Goldman, Sachs & Co. are acting as financial advisers to Grand Union, a New Jersey-based supermarket chain. But industry sources say Grand Union soon may be forced to file for Chapter 11 protection from creditors.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.