They're already into the company for more than a quarter of a million dollars, but O'Sullivan Industries Monday was officially given the approval to hire FTI Counseling to offer restructuring advice.
As The Turner Report noted earlier, O'Sullivan officials had already paid FTI a $75,000 retainer when it first petitioned the U. S. District Bankruptcy Court for the Northern District of Georgia on Oct. 14 for permission to employ the company.
On Nov. 21, FTI submitted a bill for $221,878.96. According to the bill, the company's senior managing director receives $625 an hour. Fortunately, he worked less than a full hour.
On the other hand, a $580 an hour senior managing director billed the company $41,586 and a $560 an hour senior managing director billed O'Sullivan $44,658.
According to the Oct. 14 documents, the company will charge between $95 an hour and $625 an hour "depending on which staff member is assigned to the project."
Something that may be a cause of concern is a clause that has been approved which would give FTI a 10 percent incentive fee if it comes up with "specific efficiency improvements, cost reductions or revenue enhancements."