Heller’s creditors, former employees and partners better hope things get tied up soon: the bankruptcy attorneys are burning through the defunct firm’s money at a rate of over $5 million per year.
The latest fee requests are in and attorneys working for both the creditors and the estate want a combined $1.75 million in fees and expenses for work done between May and August. The first round of fee requests, for work between January and April, totaled $1.8 million.
About 1,200 creditors have filed claims for $382 million in the bankruptcy. A liquidation plan is due today, and creditors hope to have it confirmed by the end of the year. Even with confirmation, creditors will have to wrap up their litigation with Bank of America, which seems inclined to draw things out as long as possible. Creditors are currently in mediation talks with former shareholders and employees.
— Amanda Royal
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