Friday, January 20, 2012

Time for a Fresh Approach to Bankruptcy Fees

The executive office of the U.S. Trustee has plans to revise the professional fee guidelines, especially as they apply to lawyers retained in big chapter 11 cases.

Fees are a controversial issue. Context clearly matters: Mergers and acquisitions work probably generates equally large bills (we generally don’t know, since M.&A. bills don’t get filed in court), but Chapter 11 cases take place against a backdrop of employee layoffs, discontinued pension benefits and unpaid suppliers. As such, it is perhaps not surprising, even if it is regrettable, that so much of the debate regarding Chapter 11 fees is overheated.

Read the rest of the article at the New York Times

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