The Lehman Bankruptcy Fee Watch: Advisers to Get $906 Million?

[WSJ_law_blog]

Let’s keep ourselves busy with a pet project: Tracking the fees that Weil Gotshal receives from its work on the Lehman bankruptcy.
AmLaw Daily reports that, according to court documents made public Wednesday, the firm received a $5 million advance in September for work leading up to the bank’s bankruptcy filing. “The negotiations were unsuccessful and the chapter 11 cases resulted,” wrote Harvey Miller (pictured), Weil’s bankruptcy guru, in a filing. “[Weil] is applying the advance to the charges for the professional services performed and to reimbursement of out of pocket expenses.”

But that $5 mil could be peanuts. AmLaw Daily notes that UCLA law prof Lynn LoPucki, estimates advisory and legal fees could come to $906 million, according to Bloomberg reports.

In a separate filing, Lehman sought to employ Curtis, Mallet-Prevost, Colt & Mosle as its conflicts counsel. Curtis, Mallet bankruptcy partners Steven Reisman and Lynn Harrison will step in as Lehman’s lawyers when a potential or actual conflict of interest arises with Weil, Gotshal, the filings say.

Both applications reportedly lay out billing rates the two firms expect to charge Lehman. Weil says its partners charge $650 to $950 an hour. Curtis, Mallet says its partners charge $675 to $785 an hour. Rates for counsel, associates, and paralegals also are detailed.