Post Number: 70
|Posted on Thursday, April 03, 2008 - 12:37 pm: || |
http://crainsdetroit.com/apps/ pbcs.dll/article?AID=/20080403 /REG/936024699/1069
What I don't get about this article is why isn't Plastech using one of the major Detroit lawfirms to do its bankruptcy? I bet Skadden Arps (NYC firm) charges $300-$400 more per hour than the Detroit firms. I'm not saying that big Detroit companies should use Detroit talent/lawfirms out of loyalty but because they represent real cost savings and can produce a first tier product at a fraction of the cost. The motive to use Detroit firms should be even greater given that Plastech is in bankruptcy and many of our other area companies are experiencing financial difficulties. Does anyone have any insight into this matter?
(Message edited by sparty06 on April 03, 2008)
Post Number: 100
|Posted on Thursday, April 03, 2008 - 12:51 pm: || |
Bankruptcy is a very specialized field, especially business bankruptcies. It is a little clique, even at the local level. Many lawyers no nothing about bankruptcy (and often give out wrong assumptions based upon their general practice). Skadden is well known as the firm you want to have in a complicated business restructuring.
Also, Bankruptcy practice is unusual in that the top per hour fees are somewhat regulated by the court (i.e. they often have caps, official or unofficial as to what they will allow, so an excellent practitioner costs about the same as a mediocre one).
Post Number: 71
|Posted on Thursday, April 03, 2008 - 12:59 pm: || |
A brief web check shows that all of the major Detroit law firms have established bankruptcy practice groups that have handled a diverse variety of businesses and situations.