Government Regulator Scrutinizes Overly Expensive Expenses in A&P Bankruptcy

by San Antonio Attorney

William K.  Harrington, a U.S.  Trustee, recently filed a case in court, inciting speculation about thousands of dollars that cover expenses for law and consulting firms about work done on A&P’s liquidation.

Legal and professional bills are the target of scrutiny and approval from court when it comes to bankruptcy cases.

The filing from the trustees reminds majority of the professionals on what are the kinds of bills, which are acceptable in bankruptcy.

Harrington stated that changes need to be reasonable and an explanation in detail in order to inform the judge and in return evaluate the bills rather than run an operation for extracting crucial information.

Lawyers and consultants also can’t charge a company with bankruptcy problems for clerical tasks that a part of the firm’s overhead.

The trustee also questioned 17 pages worth of fees and expenses incurred by A&P bankruptcy lawyers.  These expense reports were deemed to be lacking in detail and considered overhead with lack of substantiation.

The mysterious expenses cover thousands of dollars such as Sodexo, hundreds of dollars for taxi fees in Skyline Credit Ride.  This type of logistics transports Weil attorneys from 30 miles between their offices at the GM Building in Manhattan and the White Plains Bankruptcy Court, where A&P made its bankruptcy filing.

Harrington also objected to more than $17,000 in total expenses from Evercore group, an A&P Investment Banker.  The government watchdog also objected to the reimbursement of FTI Consulting, due to excessive charges of $20 per meal for each person.  These included a huge amount of meals charged at $50 per person.

Harrington pointed out the salary of each professional working for A&P’s unsecured creditors and the bills that A&P must cover.  There were also court documents sold by unsecured creditors’ lawyers at the firm Pachulski Stang Ziehl & Jones and their respective financial advisers at Zolfo Cooper.

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