EXIDE BANKRUPTUCY UPDATE: Exide’s bankruptcy a gold mine for professional firms
ATLANTA BUSINESS JOURNAL
Atlanta company’s bankruptcy a gold mine for professional firms
Professional service firms are getting a big financial jolt from the bankruptcy case of Atlanta battery maker Exide Technologies.
Weighed down by debt, Exide, one of the world’s largest producers and recyclers of lead-acid batteries, filed for Chapter 11 protection in June. Its CEO later quit.
Exide hired KPMG LLP to be its auditor for the reorganization. On Aug. 29, KPMG submitted its bill for the period June 10 through July 31, totaling $217,410. KPMG is also seeking reimbursement for expenses of more than $3,000.
KPMG says its employees spent more than 600 hours working on the bankruptcy, billing from $198 to $660 an hour. To read more about KPMG’s work, click here.
The company’s creditors also hired San Francisco-based Guggenheim Securities LLC to represent them. On Aug. 29 Guggenheim submitted its first monthly bill for its services during the period June 24 through July 31, for a total of $123,333. Guggenheim is also seeking reimbursement for more than $13,000 of expenses.
Guggenheim says its employees spent more than 1,000 hours during the month working on the Exide case, handling case administration, analysis, financing matters and correspondence.
Its expenses for the month include $6,400 for airfare, $2,000 for hotels, $3,300 for ground transportation, and nearly $1,700 for meals. To read Guggenheim Securities’ full payment request, click here.
Exide’s reorganization will be a financial feast for many other professionals besides KPMG’s and Guggenheim’s.
Law firm Lowenstein Sandler LLP is seeking more than $186,000 in compensation for its work from June 18 through June 30, and more than $531,000 for work from July 1 through July 31.
Zolfo Cooper LLC, a bankruptcy consultant working for Exide’s creditors, billed more than $585,000 for its work from June 24 through July 31, and is seeking reimbursement of more than $16,000 in expenses.
Exide hired law firm Skadden, Arps, Slade, Meagher & Flom LLP as its bankruptcy counsel, paying Skadden a retainer of $1 million. Skadden charges from $840 to $1,220 per hour for partners, $845 to $930 an hour for counsel, and $365 to $795 per hour for associates.
On Aug. 26, Skadden filed its bill for its work from July 1 through July 31 totaling nearly $1.7 million, plus expenses of nearly $25,000. To see the billing of Skadden’s individual attorneys, click here.
Exide also hired restructuring firm Alvarez & Marsal North America to provide a chief restructuring officer, Robert M. Caruso. Exide agreed to pay Alvarez & Marsal $130,000 per month for Caruso’s services, plus $275 to $875 an hour for other personnel. The firm is also eligible for incentive compensation of up to $1.75 million if a Chapter 11 plan of reorganization is consummated.