Lehman Brothers Holdings Inc. Reaches All Time Bankruptcy High

The nation's most expensive bankruptcy has now reached an all-time high of $1.07 billion as the cost for bankruptcy lawyers, consultants, and financial advisors alone.  An additional $44 million was added to the previous number for the case of investment bank Lehman Brothers Holdings Inc.

New York Attorney General Andrew Cuomo has filed a suit against Ernst & Young, Lehman's outside accounting firm, stating that they knew about the company's financial weakness and hid it from investors for seven years.

The company filed papers with the U.S. Bankruptcy Court in Manhattan outlining, in detail, the 41 professional firms that it has employed to help it through the bankruptcy proceedings. One of the largest firms, Alvarez & Marsal, has been paid about $382 million since Lehman asked for Chapter 11 bankruptcy protection on September 15,  2008. At this time Bryan Marsal is serving as Lehman's chief executive. Marsal's company is also running Lamco, an asset-management unit that Lehman spun out during its bankruptcy case.

Another firm that has accumulated a large paycheck at the expense of Lehman is Weil, Gotshal & Manges to the tune of $254.6 million.

Planning to file for bankruptcy?  Contact us to get help from a knowledgeable San Antonio bankruptcy lawyer.