Plastech Lawyers Bank $1,002,674.50 for One Month's Work
We haven't reported on the Plastech bankruptcy for some time. Well, they're still bankrupt. burning their way through a $45.15m line of credit (up $10m since we last checked). And they're still making parts for Chrysler, who is none-too-pleased about their inability to remove the tooling to make the plastic parts for the cars that they can't sell. Of course, you already know the big winner in this fiasco: the lawyers. Automotive News [AN, sub] reports that "The New York law firm Skadden, Arps, Slate, Meagher & Flom LLP on Tuesday, March 25, billed Plastech $1,002,674.50 in legal fees and $54,486.82 in expenses during the supplier's first month of Chapter 11 bankruptcy court proceedings, according to documents filed in U.S. Bankruptcy Court in Detroit." More specifically, "Skadden Arps billed Plastech for 1,835.05 hours of service at an average rate of $546.40 an hour. The $54,486.82 in expenses covered travel, printing, research and messenger fees, as well as meals for the Skadden Arps legal team." As AN points out, Skadden Arps is drinking small beer. "Supplier Federal-Mogul Corp., which emerged from more than six years of bankruptcy proceedings at the end of 2007, spent about $700 million, or $9.3 million a month, on bankruptcy related [legal] expenses."
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