The US trustee in charge of overseeing the GM bankruptcy has filed a complaint with the bankruptcy court over excessive fees being charged by two outside advisory companies, AlixPartners and Evercore Group, calling them "unreasonably rich."
According to the Financial Times, the trustee estimates that these advisors could pull in as much as $130M in fees by the time the bankruptcy is over. Most notably, both companies would receive "success fees" upon completion of the bankruptcy procedure. Alix would get $13M while Evercore would score $17.9M.
"Neither Alix nor Evercore had any success at finding either a purchaser or funder for [GM]," the trustee said. "In light of all these circumstances, the Alix application clearly exceeds the bounds of reasonableness."
That pretty much sums it up.
FT.com: Trustee slams "unreasonably rich" GM fees
estreka says:
08:37 AM, 06/24/09
That's just how it goes. Lawyers are expensive, especially corporate ones.
bankerdanny says:
11:48 AM, 06/24/09
FYI, M=1,000. 1 million is MM ( 1,000 x 1,000).
Sorry, the anal retentive banker in me had to comment.