Lehman Brothers advisers received almost $1bn in fees

18 August 2010

The amount of money paid to financial advisers handling the winding up of failed bank Lehman Brothers has almost reached $1 billion, a filing has claimed.

According to the documentation, advisers working with Lehman Brothers Holdings were paid $44.5 million over the course of the last month.

Alvarez & Marsal, a restructuring firm, received $326 million in fees for interim management since the bank collapsed in September 2008.

Other firms including Weil Gotshal & Manges and Milbank Tweed Hadley & McCloy have all worked on administering the bankruptcy of the bank.

The former, a bankruptcy legal firm, received $212.3 million while the latter has been paid $61.1 million for its contribution.

Stephen Lubben, a bankruptcy law professor at Seton Hall University School of Law, told Bloomberg: “The judge can always claw back fees at the end of the case, when he’ll have a better perspective on the value of the fees.”

Bryan Marshal, Lehman Brothers chief executive, previously stated that he expects to recover more for creditors than is paid out in fees.

Auction house Christies recently announced details of an auction of art which used to decorate the walls of the failed bank’s offices.

Pieces by Lucien Freud and Gary Hume are among those expected to be sold as part of the London sale.

By Jim Ottewill

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