Cityscape

Good News For Detroit: Firms in Bankruptcy Agree to Cut Fees

December 12, 2014, 6:02 AM

Featured_16_41_27_182_cash
Krystal Crittendon says Michigan owes Detroit a stack of cash.

It goes without saying that some of the firms that provided legal and consulting services for Detroit in its bankruptcy could have cut their fees.

For example, Jones Day,  Kevyn Orr's law firm,  had submitted some billings at around $1,000 a hour, a fee that may be acceptable in towns like D.C. or New York, but not Detroit.

David Shepardson of The Detroit News reports that firms that provided services to help Detroit through its historic bankruptcy agreed Thursday to reduce legal and consulting fees.

After more than a week of negotiations with federal mediators, the law firm Jones Day and the investment firm Miller Buckfire agreed to make “significant concessions” on fees, a source briefed on the talks told The Detroit News. Other firms that have billed the city for bankruptcy-related services also agreed to reduce their bills. It’s not yet clear how much each firm cut back.

The source said only that the overall money saved — about $25 million — would pay for a lot of police, firefighters and equipment for Detroit.

Details of the deals are expected to be made public Monday during a status conference before U.S. Bankruptcy Judge Steven Rhodes. The judge must approve the agreements.


Read more:  The Detroit News


Leave a Comment:

Photo Of The Day