On Thursday, U.S. Bankruptcy Court Judge Martin Glenn approved preliminary fee requests from over one dozen law firms, advisory outfits, and accounting firms associated with the bankruptcy of Dewey & LeBoeuf, according to The Am Law Daily. Judge Glenn cut expensive hotel stays, taxi rides around New York, and time entries.
All told, $14.1 million in bills have been submitted for time worked on the bankruptcy case. The firms that were granted preliminary approval by Glenn will not be paid in full yet. They will be able to receive money that was allocated months ago in a budget set by JPMorgan Chase. Firms that did not go over budget will only receive 80 percent now.
Glenn doubts that the firms involved will ever be paid in full, even if the estate of the firm has its Chapter 11 plan approved. “This case has been on the edge of administrative insolvency since the time it was filed,” he said during the hearing.
Glenn complained multiple times about the fees and expenses submitted by Development Specialists Inc., a restructuring firm that was hired by Dewey prior to its bankruptcy filing and used sparingly afterwards. The company submitted $248,860 in fees and expenses.
“I don’t reimburse for taxi and car services around Manhattan,” Glenn said. “Take the subway. Take the bus. Better yet, have your firm pick up that cost.”
