Lawyers share in Lehman advisory bill of over £1bn

Law firms and consultants have profited from Lehman Brothers’ bankruptcy to the tune of almost $1.6bn (£1.02bn), according to the latest filings – making it the largest bankruptcy in history by a wide margin.

The court filings for fees and expenses up to 31 January show a bill of almost $1.6bn, according to CNN, twice the $783m associated with the Enron bankruptcy.

Lehman Brother’s main law firm Weil Gotshal & Manges and Milbank Tweed Hadley & McCloy, which is representing the bank’s creditors, were two of the biggest billers and are set to collect $383m and $133m, respectively.

The news comes as Lehman Brothers is expected to exit bankruptcy protection later this week, around three and half years after it first filed Chapter 11 proceedings.

According to reports, around 33 law firms have advised Lehman Brothers during its bankruptcy, with Bingham McCutchen, Curtis Mallet-Prevost, Colt & Moslef, Jones Day and Quinn Emanuel Urquhart & Sullivan all racking up bills of at least eight figures.

In the UK, Linkaters won the mandate to advise Lehman Brothers’ administrators PricewaterhouseCoopers, with London-based global restructuring head Tony Bugg leading the team.