Lehman Brothers Says it Paid $1.1 Billion to Bankruptcy Advisors

During its filing for bankruptcy, Lehman's Brothers has paid out a total of $1.1 billion to advisers over 25.5 months of bankruptcy. That includes $42.1 million paid out to managers and lawyers in October. The advising group that has received the largest sum thus far is restructuring firm Alvarez & Marshall LLC; it is responsible for running the now-defunct investment bank along with co-found Bryan Marshall. It's "interim management" has rung up a bill of $369.8 million.

Following Alvarez is Weil Gotshal & Manges LLP of York that has charged Lehman $245.8 million as the lead bankruptcy law firm in the case.

As of yet there have been no real challenges from the trustee who monitors payments like these or the bankruptcy judge for the payouts. Marshall has defended his firm's fees by stating that "the strategy of managing and maximizing the value of assets rather than liquidating quickly at fire sale values - and of pursuing litigation when we believe the potential value warrants it - takes time and requires fees...but it will yield far greater returns for the creditors than all the costs of personnel and legal and professional services combined."

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