October 28, 2010 6:06 PM
Hughes Hubbard Nets $107.8 Million for Lehman Trustee Work
Posted by Brian Baxter
Tapped two years ago to serve as counsel to a court-appointed trustee overseeing the liquidation of Lehman Brothers's broker-dealer unit, Hughes Hubbard & Reed has been paid $107.8 million for its services, Bloomberg reports.
James Giddens, the cochair of Hughes Hubbard's bankruptcy and corporate reorganization group, has been given the task of returning assets to customers of Lehman's brokerage under the Securities Investor Protection Act (SIPA).
Earlier this month Lehman disclosed in a monthly operating report that the fees it has paid to outside advisers--such as law firms, e-discovery services, financial advisers, and restructuring professionals--have passed the $1 billion mark.
Citing from a 75-page interim trustee's report, Bloomberg reports that Hughes Hubbard listed total charges for lawyers, accountants, services, and rent through September 30 at about $420 million. About one-fourth of that total went to the firm, which is serving as counsel to Giddens in his capacity as trustee.
A spokesman for Giddens said in an e-mail to Bloomberg that Giddens set up "protocols and processes for returning property to customers, and incurred substantial expenses in administering the largest broker-dealer insolvency in history," adding that the firm's fees "reflect a substantial public interest discount."
Besides Giddens, Hughes Hubbard lawyers working on the engagement include bankruptcy partners Christopher Kiplok and Daniel Lubell, antitrust chair James Kobak, Jr., and litigation partners Neil Oxford, Sarah Cave, Robert Brundige, Jr., and William Maguire.
The interim trustee's report also reveals that British firm Norton Rose has received nearly $5 million for serving as special counsel to Giddens.
The Lehman bankruptcy is the largest in U.S. history.
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