The bankruptcy practice at Weil Gotshal & Manges now accounts for 20 per cent of the firm’s business – about $160m (£87.7m) of a total 2004 turnover of $801m ($439m) – following lead roles on MCI (formerly Worldcom), Enron and Global Crossing.
The US firm has claimed $39.8m (£21.8m) for work as chief debtor’s counsel on the MCI bankruptcy, billed $93m (£51m) for its work on Enron and reaped $11.7m (£6.4m) from its work on Global Crossing.
Weil Gotshal heads a list of firms profiting from MCI’s troubles. These include Jenner & Block, which billed $21.7m (£11.9m), and Kirkpatrick & Lockhart, which billed $18m (£9.9m). Their fees are dwarfed by accountancy giants KPMG and Deloitte & Touche, which claimed a combined $314.4m (£172.5m).
Weil Gotshal co-chair of business finance and restructuring practice Marcia Goldstein led a core group of 35 lawyers full-time on MCI but used nearly 250 throughout the Chapter 11 proceedings.
The fees dwarf the previous record set by the Global Crossing bankruptcy but will be shattered by Enron.