In the first four months after Texaco Inc. filed for bankruptcy court protection, 11 law firms and law professors involved in the case requested $6 million in fees, the National Law Journal reported yesterday.
Texaco filed for protection under Chapter 11 of the federal bankruptcy code April 12 after failing to reach what it termed a "reasonable" out-of-court settlement with Pennzoil Co. over a suit resulting from a complex takeover fight for Getty Oil Co.
"The Texaco case is fast becoming the Mount Everest of the recent spate of corporate mega-bankruptcies, and lawyers scaling it can expect to see grand vistas of cash if early fee filings, to be ruled on Oct. 13, are any indication," the journal said.
Documents filed with the bankruptcy court clerk's office revealed that the fees range from $2,219,047 for Weil, Gotshal & Manges, the New York law firm that is handling the Texaco bankruptcy case, to $10,389 for a Delaware law firm that is representing the oil giant in 15 spinoff lawsuits in the Delaware Chancery Court, the journal said.
It pointed out that these legal fees, which cover only four months since the bankruptcy filing, are just the beginning.