Friday, July 31, 2009

7 Moves Forward In Bankruptcy Plan

((HT: Virginian-Pilot/McGlone))

A bankruptcy judge today refused to approve $1.7 million in Michael Vick’s legal fees from his bankruptcy case, but he will revisit the issue at Vick’s confirmation hearing in late August.

U.S. Bankruptcy Judge Frank J. Santoro heard from one of Vick’s pricey New York lawyers today, who tried to explain how his firm racked up thousands of billable hours in 10 months.

While none of the creditors’ lawyers objected to the legal fees, the assistant U.S. trustee noted some questionable expenses, such as a $1,200 airline ticket, a charge for turning on office air conditioning on a Saturday, and car service to and from the office.

Michael Blumenthal of the New York firm Crowell & Moring said his firm had five lawyers and more than two dozen support staff working on Vick’s case, sometimes working late into the night which explained the need for a car service.

He also corrected the judge’s statement Thursday that the firm had billed 8,000. Blumenthal said it was 7,200 hours and noted that the firm cut its fee from $2.6 million to $1.5.

Vick will return to bankruptcy court Aug. 27 for a confirmation hearing. Santoro has already rejected an earlier reorganization plan.

Vick declined to comment before and after the hearing. His lawyers said that they did not expect any news today on whether an NFL team would be willing to sign the former Atlanta Falcons star.

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