November 24, 2010
Financial Lawyers Conf Program
After Philly News, Pacific Lumber, Chrysler, and Metaldyne:
Plans, Sales, Secured Lenders' Objections (And More)
Thursday, December 9, 2010
Speakers: Dan Bussell, Klee, Tuchin, Bogdanoff & Stern LLP
Ben Logan, O'Melveny & Myers, LLP
Jennifer Taylor, O'Melveny & Myers, LLP
Location: The Olympic Collection
11301 Olympic Boulevard
Los Angeles, California
Time: 6:00pm - 6:45 pm - Registration and Cocktails
6:45pm - 7:30 pm - Dinner
7:30pm - 8:30 pm - Program
Cost: $70.00 FLC Members
$40.00 Lawyers in Gov’t Svc.
November 23, 2010
Profiles in Doing Both: Is There a Sequel in Blockbuster's Future?
"GM has done it. Pilgrim's Pride and Delta Air Lines, too. Each of these companies entered bankruptcy wobbling, and emerged stronger afterwards. Now it's Blockbuster's turn."
November 22, 2010
Texas Rangers' Official Got Death Threats During Sale Process, Lawyer Said
"The Texas Rangers’ chief restructuring officer, William Snyder, got death threats during the Major League Baseball team’s bankruptcy proceedings, a lawyer said in a July conference in the judge’s chambers."
Lehman Bankruptcy Fees Top $1 Billion
Wall Street Journal:
Lawyers and other professionals presiding over the bankruptcy proceedings of
Lehman Brothers Holdings Inc. have taken in a collective $1 billion in fees.
They crossed the threshold in October, according to a monthly securities
filing. Since the bankruptcy filing in September 2008, fees paid for
professional services total $1.023 billion. The law firms, consultants and
other advisers took in $40.6 million in fees in October alone.
Lehman's collapse unleashed a contraction in the credit markets, leading to
a $700 billion government bailout of the financial system. Lehman was a
major derivatives counterparty, and the unwinding of those contracts is what
is costing so much money, said Lynn LoPucki, a law professor at University
of California Los Angeles. "This is clearly the most expensive bankruptcy
case in history," he said.
Law firm Weil Gotshal & Manges, the lead bankruptcy counsel, had $8.8
million in fees and expenses in October and a total of $245.8 million in the
Alvarez & Marsal, the restructuring firm overseeing the unwinding of
Lehman's operations and the unraveling of its derivatives contracts, had
$13.4 million in fees and expenses for the month and a total of $369.8
million since the start of the case—the most of any adviser.
Lehman's chief executive officer, Bryan Marsal of the Alvarez & Marsal firm,
noted progress, including increased estimates of recoveries for creditors, a
reduction in the amount of claims, and an anticipated workforce reduction in
the next year.
A court recently ordered Bank of America Corp. to return $500 million it had
seized from Lehman shortly after its bankruptcy filing. Closing briefs in a
separate $11 billion lawsuit against Barclays PLC are due to be filed
"The strategy of managing and maximizing the value of assets rather than
liquidating quickly at fire-sale values—and of pursuing litigation when we
believe the potential value warrants it—will yield far greater returns for
the creditors," Mr. Marsal said in an emailed statement.
Milbank Tweed Hadley & McCloy, the creditors' lead counsel, had $4.4 million
in fees and expenses in October and $75.6 million overall.
FTI Consulting Inc., a financial adviser to the creditors, had $2.5 million
in fees and expenses in October and $42.6 million overall.