Cost of Chrysler bankruptcy nears $85 million
Chrysler is approaching the end of its Chapter 11 case, and recently found out that it will end with about $85 million in fees to attorneys and advisers. That bill will be picked up almost entirely by the American taxpayer.
The company already paid both lawyers and advisers a total of $82.1 million in fees, with another $2.75 million going toward expense reimbursements.
According to the report from the Wall Street Journal, the car manufacturer was under Chapter 11 protection between April and June 2009, and received bailouts from both the U.S. and Canadian governments totaling about $4.5 billion to finance the case. Those loans will be repaid with money from the company's estate liquidation.
The report said that despite the high fees - one firm alone charged an average of $500 an hour, for a total of $33.6 million - and payments to its unsecured creditors to pay their legal bills, Chrysler was able to keep its bankruptcy costs relatively in check.
A Reuters report on the case said that Chrysler is still partly owned by the U.S. Treasury Department and is planning a public stock offering for next year.
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