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Bankrupt UAL Paying Advisers $13,000 an Hour-Report
CHICAGO (Dow Jones)--UAL Corp. , parent of United Airlines which filed for bankruptcy Dec. 9, is racking up fees from lawyers, consultants and public relations firms at a cumulative clip of $13,000 per hour, according to the Chicago Tribune.
The company has said it expects to emerge from Chapter 11 financial reorganization in 18 months. At the current rate, that could cost UAL $100 million in adviser fees, according to legal observers, the newspaper reported.
United executives said last week that the nation's second-largest airline expects to lose $22 million a day this month. Part of the loss will come from operations, and part from expenses related to the Chapter 11 filing, according to Chief Executive Glenn Tilton and Chief Financial Officer Jake Brace.
Big winners on the UAL adviser payroll include partners at the law firm Wilmer, Cutler & Pickering, an antitrust and regulatory specialist, who can bill up to $675 per hour, according to the Chicago Tribune.
Babcock & Brown, a financial adviser, said it will bill the airline $500,000 a month, but that rate could go up to $750,000 a month if the United requires additional services, the Tribune said.
Gavin Anderson & Co., a public relations company, said top officers can charge UAL between $350 and $450 per hour for their work.
United has declined comment on fees it will pay in bankruptcy.
Fees for services during Chapter 11 proceedings will be reviewed by United and by its creditors committee, which in 120 days is expected to come up with a viable business plan for the money-losing airline.
U.S. bankruptcy trustee Ira Bodenstein must approve fees and expenses as reasonable before advisers can be paid.
Legal experts said the fees seem to be in line with those charged in other big bankruptcy cases, the newspaper reported.
CHICAGO (Dow Jones)--UAL Corp. , parent of United Airlines which filed for bankruptcy Dec. 9, is racking up fees from lawyers, consultants and public relations firms at a cumulative clip of $13,000 per hour, according to the Chicago Tribune.
The company has said it expects to emerge from Chapter 11 financial reorganization in 18 months. At the current rate, that could cost UAL $100 million in adviser fees, according to legal observers, the newspaper reported.
United executives said last week that the nation's second-largest airline expects to lose $22 million a day this month. Part of the loss will come from operations, and part from expenses related to the Chapter 11 filing, according to Chief Executive Glenn Tilton and Chief Financial Officer Jake Brace.
Big winners on the UAL adviser payroll include partners at the law firm Wilmer, Cutler & Pickering, an antitrust and regulatory specialist, who can bill up to $675 per hour, according to the Chicago Tribune.
Babcock & Brown, a financial adviser, said it will bill the airline $500,000 a month, but that rate could go up to $750,000 a month if the United requires additional services, the Tribune said.
Gavin Anderson & Co., a public relations company, said top officers can charge UAL between $350 and $450 per hour for their work.
United has declined comment on fees it will pay in bankruptcy.
Fees for services during Chapter 11 proceedings will be reviewed by United and by its creditors committee, which in 120 days is expected to come up with a viable business plan for the money-losing airline.
U.S. bankruptcy trustee Ira Bodenstein must approve fees and expenses as reasonable before advisers can be paid.
Legal experts said the fees seem to be in line with those charged in other big bankruptcy cases, the newspaper reported.
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