kmguru
Staff member
WorldCom: A Gift to the Lawyers
Rule no. 1 in a bankruptcy: The lawyers get paid first. And in the case of WorldCom, there seems to be a race to the trough. Six law firms, plus investment bank Lazard Frères, are going after the long-distance carrier's remaining nickel in a big way. Three are billing WorldCom at or above the once-unheard-of rate of $700 an hour.
Topping the list is Bill McLucas of Wilmer, Cutler & Pickering. He's getting $715 an hour from WorldCom's board to investigate the company's dubious accounting activities. That is $65 an hour more than he got for doing the same at Enron. A respected former Securities & Exchange Commission enforcement chief, he can name his price to troubled firms trying to show how they're coming clean. McLucas says it's up to his firm how much he bills.
Superlobbyist Tommy Boggs is also billing $700 an hour to contain damage from congressional inquires. Top lawyers at leading bankruptcy firm Weil, Gotshal & Manges are pulling in that amount as well. Neither Boggs nor Weil Gotshal lawyers would comment.
Hundreds of other lawyers, associates, and paralegals are billing for lesser amounts, depending on level of experience. And many firms haven't even been named yet. Add in Lazard, which wants a $15 million "success fee" if it ends up restructuring WorldCom, and the bankruptcy fees may end up being the biggest on record.
- By Dan Carney
Rule no. 1 in a bankruptcy: The lawyers get paid first. And in the case of WorldCom, there seems to be a race to the trough. Six law firms, plus investment bank Lazard Frères, are going after the long-distance carrier's remaining nickel in a big way. Three are billing WorldCom at or above the once-unheard-of rate of $700 an hour.
Topping the list is Bill McLucas of Wilmer, Cutler & Pickering. He's getting $715 an hour from WorldCom's board to investigate the company's dubious accounting activities. That is $65 an hour more than he got for doing the same at Enron. A respected former Securities & Exchange Commission enforcement chief, he can name his price to troubled firms trying to show how they're coming clean. McLucas says it's up to his firm how much he bills.
Superlobbyist Tommy Boggs is also billing $700 an hour to contain damage from congressional inquires. Top lawyers at leading bankruptcy firm Weil, Gotshal & Manges are pulling in that amount as well. Neither Boggs nor Weil Gotshal lawyers would comment.
Hundreds of other lawyers, associates, and paralegals are billing for lesser amounts, depending on level of experience. And many firms haven't even been named yet. Add in Lazard, which wants a $15 million "success fee" if it ends up restructuring WorldCom, and the bankruptcy fees may end up being the biggest on record.
- By Dan Carney
