Judge cuts Couderts’ fees on Global Crossing bankruptcy

The firm had applied to US bankruptcy Judge Robert Gerber to have $3.6m (£2.3m) paid out for the period from May to September as well as $265,000 (£166,200) in expenses, specifying that it would agree to a $100,000 (£62,700) reduction of its fees.

However, following objections from Global Crossing’s fee committee that compensating “transitory” professionals, such as the summer associates, was not cost-effective, the judge ruled that Coudert would see its bill reduced by $234,000 (£147,000).

Other firms working on the reorganisation of the telecoms group, which has been in bankruptcy for 15 months, saw their applications for fees and expenses approved by the court.

Weil Gotshal & Manges, the debtor’s counsel, was granted $7.3m (£4.6m) in compensation and expenses, adding to the $4.4m (£2.8m) the firm requested for work completed from January to April.

Debevoise & Plimpton, as special counsel to Global Crossing, requested $6.6m (£4.1m) for the May to September period, while for January to April the firm’s bill totalled $6.4m (£4m).

As law firm to the unsecured creditors’ committee, Brown Rudnick Berlack Israels billed around $4.2m (£2.6m) for this latest round of applications with $1.2m (£752,600) approved in the first period.

Global Crossing’s fee committee estimates that total advisory fees could reach $163m (£102.2m). So far, the proceedings have seen the company’s estate pay out an average of $11.2m (£7m) a month.