United Airline Bankruptcy Gives Lawyers, Consultants Plenty of Business.
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Dec. 17–United Airlines’ bankruptcy is creating lucrative work for the lawyers, consultants and public relations professionals working. No one can say how much the airline’s Chapter 11 will cost, although $100 million is considered a reasonable estimate, legal observers say. By comparison, Enron’s year-old bankruptcy has cost $280 million so far — and it is expected to rise. It won’t take long for United’s bankruptcy to also become a truly expensive event. Among those working on the United case: Partners at the law firm of Wilmer, Cutler & Pickering, hired to help United with regulators, antitrust issues and other legal matters, said in court documents that its top partners charge $675 an hour, although United qualifies for a 20 percent discount through the end of the month. Babcock & Brown, a financial adviser to the airline, said it will charge a flat fee of $500,000 a month for its advice, although that could rise to $750,000 if United expands the services it uses. |