Bailout Watch 589: GM C11 Lawyers Score $23m
Published: October 26th, 2009
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Is anyone surprised that the lawyers who guided “old” GM into the dustbin of history scored $255,555 a day for 90 days? The $23 million price tag seems like small beer to me. According to The Detroit News, “AP Services, headed by Al Koch, who doubles as the chief restructuring officer of GM’s bankruptcy estate, had a team of 153 people working on GM’s bankruptcy case, and several charged $835 an hour in June.” Fair enough, you know, for a $50 billion-plus taxpayer “investment.” Besides, AP dropped their rates when the Justice Department bitched about them to a federal judge. Of course, the move wasn’t retroactive. But then, why would it be?
More by Robert Farago
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Didn't someone predict the legal fees for a GM bankruptcy would be near $100 million?
Lehman Brother's European Division alone has cost so far some 112 Million in legal fees. Isn't the entire bankruptcy for Lehman amount to 800 million? I remember the Treasury required firms to limit themselves to 20 million total for GM's bankruptcy to be over quickly. Who the F cares about GM. The real wheeling and Dealing was Goldman Sachs leveraging 30-1 the 70 billion they got from taxpayers to corner the commodities market. They're paying some $22 billion in bonuses this year. What about next year? probably $45 billion all in the middle of the worst economic downturn since the great depression.
How much is the pay for being shark chum nowadays?
AP was hired by "old" GM - management of GM to guide them through "bankruptcy". Management retained jobs (almost all of them except Wagoner), got percentage of the company and 50 billions from government to run the company into the ground again. I think AP provided invaluable services to their client. If dept of justice had more professional scheisters who could master living in fast lane and not on government coin, they would charge $800/hr. Alas, they aren't of the same caliber, so they bitch. Sorry Robert, I think I repeated what you just wrote.