[ql06] Re: GENERAL: Air Canada and why we become lawyers
- From: Sheldon Erentzen <sheldon.erentzen@xxxxxxxxxxxx>
- To: ql06@xxxxxxxxxxxxx
- Date: Wed, 08 Oct 2003 11:14:58 -0400
When I finally made my decision to go ahead with this law thing, my
father asked me if there was really any money in law? Of course, he was
talking about the particular brand of bleeding-heart, liberal,
community-based litigation law I was, and am, bound to end up in.
Still, I'm sending him this article. Just to keep his hopes up that I
will become the money-grubbing, ethically lazy, vicious but rich
corporate shark he could be proud of. :-P
sheldon
oh yeah and I'm reading too, Kenneth.
"Never fear the want of business. A man who qualifies himself well for
his calling, never fails of employment."
Thomas Jefferson
Ken Campbell -- LAW'06 wrote:
>Air Canada's court fees top $15 million so far
>Legal, accounting firms doing well
>Final cost could hit $190 million: lawyer
>
>RICK WESTHEAD
>BUSINESS REPORTER
>TORONTO STAR
>OCTOBER 7 2003
>
>
>There's at least one group of Air Canada stakeholders that's not feeling
>the pain of the insolvent airline's setbacks: the lawyers.
>
>Six months after receiving protection from creditors, the carrier's
>court-appointed monitor and four law firms are believed to have amassed
>more than $15 million in legal fees, according to court documents and
>people familiar with the matter.
>
>Unlike most of Air Canada's creditors, who are faced with the prospect
>of receiving less than they're owed by the reorganizing airline, the
>accounting and law firms every two weeks are at the front of the line
>when it comes time for Air Canada to pay some of its bills.
>
>It's believed that accounting firm Ernst & Young Inc., which as monitor
>is overseeing Air Canada's restructuring, has been paid about $7.4
>million since April 1, when the airline -- crippled with more than $12
>billion in debt -- received protection from creditors. Ernst & Young is
>billing the airline about $560,000 every two weeks.
>
>For the two weeks ended Sept. 15, the accounting firm billed Air Canada
>$619,302, according to a memo obtained by the Star.
>
>Several bankruptcy lawyers said Air Canada's legal bill thus far seems
>low, "based on the importance the airline plays to the country."
>
>"An airline can be a sinkhole for time," said Bill Rochelle, a partner
>with New York law firm Fulbright & Jaworski, which specializes in
>airline bankruptcies. "You basically go from one crisis to another. The
>amount you bill is only limited by the amount of available time you
>have."
>
>By the time Air Canada emerges from bankruptcy protection, total legal
>fees will probably eclipse $190 million, Rochelle said, adding that was
>how much Kmart Holding Corp. paid lawyers during its insolvency.
>
>As of Oct. 1, as many as 252 lawyers -- including those who represent
>aircraft lessors, debt holders and labour unions -- were listed on Air
>Canada's so-called "service list," which is used to disseminate court
>filings and schedules to lawyers involved with the case.
>
>An Air Canada spokesperson declined to comment and the airline's lawyers
>didn't return calls. Stikeman Elliott, Air Canada's law firm, stands
>second to Ernst & Young in terms of the amount billed to the airline by
>its legal advisers. It's been paid about $6.5 million by Air Canada, and
>is billing about $540,000 every two weeks.
>
>Toronto-based firm Torys is acting on behalf of Air Canada's board of
>directors, but court filings don't break down how much it has received.
>
>Ernst & Young's legal adviser, Lenczner Slaght Royce Smith Griffin, has
>made about $950,000 from Air Canada-related work since April 1, based on
>twice-monthly billing of about $80,000. Willkie Farr & Gallagher, Air
>Canada's legal adviser in the United States, has received about $670,000
>in the past six months, based on average billing of $56,000 twice a
>month.
>
>New York-based Blank Rome, Ernst & Young's U.S. legal adviser, has
>generated as much as $175,000 and is billing about $15,000 every two
>weeks.
>
>
>
>
>
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