WASHINGTON Aug 6 The tab for the first nine
months of Detroit's historic bankruptcy case is at least $51.19
million, according to a report on fees and expenses charged by
the city's team of lawyers and consultants from July 2013
through March 2014.
Some of the numbers in the report, which was released late
Tuesday night, will change and possibly send the total higher.
There were no March fees and expenses listed for Jones Day,
indicating that the law firm's eventual charges will exceed the
report's $17.35 million.
Meanwhile, the report only included fees and expenses from
accountants Ernst & Young for January through March of this
year, $3.69 million.
The firm has revised and redacted monthly invoices for July
through December 2013, and the fee examiner will file
supplements on those numbers in coming days, according to the
The city's emergency manager Kevyn Orr has said he hopes the
final price tag for the largest municipal bankruptcy in U.S.
history will not reach the hundreds of millions of dollars.
Jefferson County, Alabama, which was the largest municipal
bankruptcy before the Motor City filed for protection in July
2013, spent only about $25 million on its two-year case.
Alongside Jones Day, restructuring adviser Conway MacKenzie
also charged a large sum - $8.34 million in fees and $26,351 in
expenses over the nine months. Consultant firm Dentons has
charged $7.41 million in fees and $365,526 in expenses.
Detroit will enter the final stretch of its case this month,
with the confirmation hearing on its plan to adjust $18 billion
in debt set to begin on Aug. 21. On Wednesday, Bankruptcy Court
Judge Steven Rhodes held a preliminary hearing on the
court-appointed expert witness, questions about the plan's
feasibility, the status of exit financing, and other issues.
(Reporting By Lisa Lambert; Editing by Nick Zieminski)