Sbarro Trustee Balks At Rothschild Legal Fee Bid

Law360, New York (April 27, 2011, 11:58 AM EDT) -- The federal trustee overseeing Sbarro Inc.'s bankruptcy in New York objected Tuesday to the pizza chain's bid to hire Rothschild Inc. as its financial adviser and investment banker because of Rothschild's requirement that Sbarro pay for overhead legal expenses.

U.S. trustee Tracy Hope Davis told the court that, on top of a $150,000-per-month fee, a $2.5 million recapitalization fee and a $500,000 fee payable to Rothschild upon the consummation of any credit facility amendment that would help Sbarro in its quest to trim $200 million in...
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