It pays to help a company that has declared Chapter 11 bankruptcy.
Documents filed today in U. S. Bankruptcy Court for the Northern District of Georgia indicate the law firm and accounting firm the company have employed will receive a pretty penny as the process continues.
The Kansas City law firm of Armstrong-Teasdale bills at $258 per hour, the document said "and rates typically increase Jan. 1 of each year." At the moment, the firm estimates it will bill O'Sullivan Industries $2,800 per month, but future billings "are not expected to exceed $20,000 per month."
The famed Price Waterhouse accounting firm will handle auditing for O'Sullivan Industries. Price Waterhouse's rates range from $75 per hour to $739 per hour, the documents said. At the moment, the average hourly rate is $340, the documents indicated with average monthly fees starting at $50,000. That too, will increase when post-petition time gets here, with the bill skyrocketing to $89,000 to $141,000 per month, according to court documents.
Of course, the company issued a press release Wednesday, indicating it has received $35 million in financing, so it can keep paying wages and other costs of doing business.
No comments:
Post a Comment