NEW YORK — Eleven groups of lawyers and other professionals involved in The Leslie Fay Cos.’ Chapter 11 case are seeking more than $5.6 million in professional fees and expenses for the four months ended April 30.
The largest single bill — $1.22 million — was submitted by Arthur Andersen & Co., Leslie Fay’s accountants and financial advisers.
Others asking for big dollars for their work in the case include Weil, Gotshal & Manges, counsel to Leslie Fay, $1.08 million; Stroock & Stroock & Lavan, attorneys for the unsecured creditors’ committee, $849,681; and the court-appointed examiner, Charles A. Stillman, $502,882.
Bankruptcy Judge Tina L. Brozman will hear the motion for the fee applications on Thursday.
Separately, Brozman has pushed back to Thursday the conference to discuss the unsealing of the examiner’s report. It had been scheduled for today.
As noted, the examiner’s report, which has been under wraps, critiquesLeslie Fay’s handling of its internal probe into its accounting scandal as well as reviews the role played by Weil, Gotshal & Manges, which helped the company in its investigation and currently serves as its counsel. The fraudulent accounting, first disclosed in February 1993, led to a credit freeze on the firm and its filing for Chapter 11 two months later.
Also on Thursday, Leslie Fay and the ILGWU will seek bankruptcy court approval for their new contract agreement. If the pact is approved, the union’s six-week strike against the firm will end.
— Fairchild News Service