The co-founder of the restructuring advisory firm is charged with
assisting in the massive wind down of Lehman Brothers Holdings Inc. and
is asking the U.S. Bankruptcy Court for the Southern District of New
York in Manhattan to approve incentive fees as high as 25% on top of
the hourly rates and up-front fees his firm has already reaped.
Alvarez
& Marsal North America LLC has dispatched some 125 employees to get its hands around the complex Lehman bankruptcy. The firm has assisted
Lehman in its various asset sales, worked on unwinding trades and even
helped administer the claims filed against Lehman -- and been paid
handsomely for it. Alvarez & Marsal asked for a $2.5 million
up-front fee at the outset of the bankruptcy, and hourly fees up to $850
are being paid to Bryan Marsal and other top advisers at the firm.
In
a Monday fee application filed with the Manhattan bankruptcy court,
however, Alvarez & Marsal is asking for additional incentive fees
that would be capped at 25% of the hourly fees paid to the firm over
the duration of the case.
Under its proposal, the firm would start
earning these incentive fees after recovering at least $15 billion for
unsecured creditors. In the event such a milestone is reached, Alvarez
& Marsal is seeking to be paid 0.175% of all distribution to
unsecured creditors above the $15 billion threshold.
The firm is
also seeking a claims management fee "in an amount to be determined at
the conclusion of the case based on A&M's substantial contribution
to the management and mitigation of the claims" against Lehman. - John
Blakeley
Comments
Wall Street chieftains across the board may be forgoing bonuses this
year, but don't tell that to Alvarez & Marsal's Bryan Marsal. 
This is disgusting. Profiting from a bailout over top of what already happened at Lehman. This is insane and should not be allowed. Send this note to Congress to stop this miserly behaviors now. From GM jets to this!