On crucial Dewey bankruptcy business
The Am Law Daily reports that US bankruptcy court judge Martin Glenn expressed reservations over what he considered excessive fees and expenses billed to the cash-strapped estate while approving preliminary fee requests from a dozen law firms and other professional advisers.
Get the bus
On several occasions, the judge slammed expenses that had been billed to the firm. ‘I don't reimburse for taxi and car services around Manhattan,’ Judge Glenn emphatically pointed out. ‘Take the subway. Take the bus. Better yet, have your firm pick up that cost.’
According to the report, more than $14 million in bills have been submitted for time spent working on the bankruptcy.
However, Judge Glenn suggested that those receiving approval were unlikely to be paid in full any time soon. Firms can only receive what was allocated months ago in a budget set by lead lender JPMorgan Chase, and the few firms that didn't go over budget can only receive 80 per cent at the moment.
Out of pocket
Judge Glenn added that some firms may never be paid in full at all. Lead bankruptcy law firm Togut Segal & Segal, creditors’ lawyers Brown Rudnick, former partners committee counsel Kasowitz Benson Torres & Friedman, financial advisers Deloitte and Ernst & Young and others were all warned they may never be fully paid for their work, even if the estate's pending plan is approved.
‘This case has been on the edge of administrative insolvency since the time it was filed,’ Said Judge Glenn.