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Enron’s Legal, Consulting Fees “Shocking”


— November 15, 2003

By Enron’s own reckoning, the legal and accounting costs of its bankruptcy will exceed $1 billion in 2006.

Typically, legal fees in a bankruptcy drop off dramatically after a company gains approval for a plan of reorganization — a road map for its exit from bankruptcy — which Enron expects to do early next year.

But the company’s budget through 2006 estimates more than $300 million will be spent after Enron confirms its plan. That’s more than any company has ever spent confirming a Chapter 11 bankruptcy plan.

“It’s shocking,” said Lynn Lopucki, a law professor at the University of California at Los Angeles law school who studies bankruptcy professional fees.

The largest amount of professional fees on record is the Luxembourg-based case of Saudi Arabian Bank of Credit and Commerce International, with $200 million in fees, although WorldCom may meet or exceed this total.

Looks like the vultures are having their fill. Details here from the Houston Chronicle. (via Drudge)


By Enron’s own reckoning, the legal and accounting costs of its bankruptcy will exceed $1 billion in 2006.

Typically, legal fees in a bankruptcy drop off dramatically after a company gains approval for a plan of reorganization — a road map for its exit from bankruptcy — which Enron expects to do early next year.

But the company’s budget through 2006 estimates more than $300 million will be spent after Enron confirms its plan. That’s more than any company has ever spent confirming a Chapter 11 bankruptcy plan.

“It’s shocking,” said Lynn Lopucki, a law professor at the University of California at Los Angeles law school who studies bankruptcy professional fees.

The largest amount of professional fees on record is the Luxembourg-based case of Saudi Arabian Bank of Credit and Commerce International, with $200 million in fees, although WorldCom may meet or exceed this total.

Looks like the vultures are having their fill. Details here from the Houston Chronicle. (via Drudge)

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