| |||||||||||||||
| |||||||||||||||
 Wall Street chieftains across the board may be forgoing bonuses this
year, but don't tell that to Alvarez & Marsal's Bryan Marsal.
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 CategoriesComments Deal Video
    Community
Transactions: July 20, 2009News reports suggest that the rational market has died but it's hard to invest based on behavioral economics. Now we're left to our own devices. Bankruptcy Bankruptcy buyer bewareEnvironmental issues in Chapter 11 reorganizations.  Elsewhere on The Deal.comDealwatchThe Deal MagazineCorporate Dealmaker
The Deal VideoCategories
Blog roll
Archives
| |||||||||||||||
|
|
|
|
|
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!