Lehman bankruptcy fees pass billion-dollar mark
The price tag for the most expensive bankruptcy in history topped $1 billion.
The price tag for the most expensive bankruptcy in history topped $1 billion.
For Lehman Brothers, which filed for bankruptcy in 2008, the $1 billion in fees represents the total expenditures on legal help, consultants and financial managers. This includes $40.6 million in fees for the month of October alone.
Restructuring firm Alvarez and Marsal led recipients with $369 million in fees for interim management, Bloomberg reports. Weil Gotshal and Manges of New York placed second with $245.8 million in payments.
"The strategy of managing and maximizing the value of assets rather than liquidating quickly at fire sale values - takes time and requires fees," Bryan Marsal, of Alvarez and Marsal, told Bloomberg in an e-mail on Monday. "But it will yield far greater returns for the creditors than all the costs of personnel and legal and professional services combined."
By October 31, this process has left Lehman and its affiliate companies $21.1 billion to liquidate and pay creditors, the news source says.
In its initial 2008 filing, Lehman cited assets of $639 billion.
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