NEW YORK — Professionals in the recently confirmed R.H. Macy & Co. reorganization received an early Christmas present Wednesday when Bankruptcy Judge Burton R. Lifland released more than $4 million in fees that had been withheld during the nearly three-year-old case.
Judge Lifland also approved an additional $2.6 million in fees earned in the three months ended Oct. 31.
The latest fees brought Macy’s professional expenses to $59 million, with one more billing period yet to be approved. During the hearing, Harvey Miller of Weil, Gotshal & Manges, counsel to Macy, said Macy’s fees are “a real bargain” compared with the amount paid to professionals in Federated Department Stores’ Chapter 11 case.
Federated’s two-year reorganization generated fees of roughly $100 million. As reported, Macy’s, upon confirmation earlier this month, merged with Federated.
While agreeing that Macy’s fees have mostly been “reasonable,” Lifland blasted Macy’s financial advisers, The Blackstone Group, for charging Macy an hourly rate of $2,600 for September.
“I frankly think that for September services were quite minimal by Blackstone, and that should be reflected, but is not,” said Lifland, who reduced Blackstone’s $367,000 bill by $25,000.
Lifland said he was also troubled by transportation expenses submitted by various professionals.
“The court is concerned about excessive use of luxurious transportation,” said Lifland, who added that the amount of money in question is “small, but the principal is large.”
A final fee application hearing will take place early in 1995.
— Fairchild News Service

load comments
blog comments powered by Disqus