Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

$7B+

AI Overview



+7
Lehman Brothers' bankruptcy, the largest in US history, has incurred over $7 billion in professional fees, including attorney and other consulting fees. These fees, which are paid from the same pool of money used to repay creditors, have been a significant factor in the overall cost of the bankruptcy process.
Breakdown of Fees:
Law firms:
Over 30 law firms were involved in the case, with fees exceeding $1 billion.
Alvarez & Marsal:
The firm managing the liquidation of Lehman's assets received over $627 million in fees.
Other professionals:
Consultants, accountants, and other advisors also received substantial fees, contributing to the overall total.
Total Costs:
The total expenses for the Chapter 11 and SIPA proceedings reached approximately $7.26 billion, including professional fees and other operational costs.
Key Points:
The fees are publicly available because they are paid from the same funds designated to repay creditors.
The U.S. Trustee Program, which oversees bankruptcies, has been working to regulate spending and ensure maximum recovery for creditors.
Some fees have been deemed excessive, and the Trustee is working on new guidelines to increase disclosure and oversight.
Why are these fees so high?
Lehman's bankruptcy was the largest in U.S. history, involving complex legal and financial issues that required extensive professional expertise. The sheer volume of assets and liabilities, the number of creditors involved, and the need to unwind complex financial transactions all contributed to the high cost of the bankruptcy process.