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Bankruptcy

: Credit Slips

GM Retention Applications

By Stephen Lubben

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The key retention applications were filed on Friday, and by the morning we can expect the inevitable gasping story about how Harvey Miller bills at $950 an hour. The press keeps doing this, and the big firms have no reason to stop them, given that most of the cost of a case comes from the middle of the billing structure.

Reviewing the Weil application, I was struck by how dreadfully dull retention applications really are. I mean, the Weil GM application is essentially the same basic application that Weil/Skadden/etc. have been filing for at least 15 years now -- I have the binders in my office to prove it.

Why hasn't this been reduced to one page ("We want to retain Weil Arps & Ellis to do the typical things that debtors' counsel does in big chapter 11 cases. They charge a lot, but we think they're worth it. As shown by the attached, they meet the requirements of §327(a).") with an attached declaration that has the case-specific (i.e., interesting) information?

Full post as published by Credit Slips on June 14, 2009 (boomark / email).

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