Bankruptcy’s Bill: $75 million and counting

Bankruptcy’s Bill: $75 million and counting

Detroit’s Chapter 9 is now the costliest municipal bankruptcy on record, more than doubling Jefferson County, Ala.’s bill with the trial yet to come, reports Crain’s Detroit Business.

… Detroit has been billed more than $75 million in fees and expenses from 19 professional services firms through late June. It has paid out about $64 million of that so far, according to city records, including more than $38 million paid to law firms.

According to city records, it still owes another $7.6 million in outstanding balances to the same 19 companies for the same period — mainly due to a bankruptcy court order last September to withhold 15 percent of most professional fees until after the invoices clear a review by a fee examiner.

Topping the billing list, Crain’s reports, is the Jones Day law firm, widely considered one of the leading bankruptcy groups in the country. Before being named Detroit’s emergency manager, Kevyn Orr was a partner there. The Detroit City Council approved the Jones Day contract.