Detroit counts cost of legal fees over bankruptcy


By Neasa MacErlean

06 February 2014 at 11:58 BST


Detroit, the bankrupt city now being run by ex-Jones Day partner Kevyn Orr, paid out US$13.3m in legal, accountancy and other professional fees in the three months to September.

The Detroit Free Press predicts 'even larger fees' from bankruptcy hearings. spirit of america

Another US$348,000 was incurred by advisers in expenses. The Detroit Free Press predicts 'even larger fees' when the Q4 fees statement comes through - since hearings took place in the autumn which were attended by the lawyers. The newspaper says that 'the city has approved $62million in contracts with lawyers and consultants' in order to handle its US$18b of debt and long-term liabilities. Jones Day received US$6.6m in fees in Q3, after giving discounts of $1.5m. It also submitted expenses of $143,000. Source: Detroit Free Press

 
   
 
 
 

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