The cost of unwinding Bernard L. Madoff’s estate for the benefit of his victims is climbing, with a total of almost $25 million in new fee requests filed on Monday with the federal bankruptcy court in Manhattan.
If the new bills are approved and added to those approved last summer, the legal tab for the first 10 months of the liquidation will rise to almost $40 million.
All the approved bills will be paid by the Securities Investors Protection Corporation, an industry-financed agency that oversees brokerage firm bankruptcies.
“Contrary to what has mistakenly been reported by the news media and on blogs,” none of these expenses will be paid with money that would otherwise go to reimburse victims, the primary fee application emphasized.
Therefore, it continued, the expenses will have “absolutely no impact” on the amount victims ultimately receive.
The fee applications were from Irving H. Picard, the court-appointed trustee for the Madoff estate; Baker & Hostetler, his lawyers; AlixPartners, the consultant handling claims; a law firm handling Mr. Madoff’s personal bankruptcy; and eight foreign law firms tracking assets overseas. The consultant and law firms also applied for $400,000 in out-of-pocket expenses.
for full article see link: http://www.nytimes.com/2009/11/24/business/24trustee.html?_r=1&ref=business
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