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Company's Legal Bills Mount in Bankruptcy

March 31, 2010 | Posted in : Bankruptcy Fees / Expenses, Hourly Rates, Legal Bills / Legal Costs, Litigation Management

The Chicago Tribune reports that its parent company, the Tribune Company, has amassed over $138 million in legal fees for its Chapter 11 bankruptcy protection.  That amount equals one quarter of the media company’s cash flow from last year.  According to the newspaper report, Sidley Austin, the company’s lead attorney, has billed over $25 million.  During the last 15 months, the law firm has had 160 people working on the case, who have collectively billed 4.6 years of time at an average hourly rate of $500.  The report also shows a handful of partners pulling down top hourly rates that range from $925-$965.  Included in the report, among other things, was $1.2 million billed to the Tribune Company for the time spent preparing the legal bills.