Bankrupt Lehman Brothers Holdings Inc.’s payments to advisers should be “reasonable, actual and necessary,” and the committee overseeing compensation and expenses should have power to object to monthly fee applications, according to a court filing by the fee committee.
Lehman Brothers paid its managers and advisers almost $1.2 billion through January, according to court papers filed yesterday in U.S. Bankruptcy Court in Manhattan.
The fee committee was appointed in 2009 to review payments by the New York-based firm, which filed for bankruptcy in September 2008. The overseer’s independent member and head until January was Kenneth Feinberg, who administers BP Plc’s Gulf of Mexico oil-spill fund.
The fee committee said it’s asking a judge to approve changes to its protocol because they will “facilitate the discharge of the fee committee’s duties and allow for more efficient and timely resolution of disputes.”
Lehman Brothers became the most expensive bankruptcy to administer in U.S. history in April 2010, when it topped the $757 million cost of energy trader Enron Corp.’s three-year liquidation, according to the database of Lynn LoPucki, a bankruptcy law professor at the University of California, Los Angeles.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).