Borders Consultant Can Charge Legal Expenses To Estate

Law360, New York (August 24, 2011, 10:16 PM EDT) -- A New York bankruptcy judge ruled on Tuesday that consulting firm Mercer Inc., which is advising Borders Group Inc. in its Chapter 11 proceedings, can submit legal expenses for reimbursement by the bankrupt bookseller's estate.

In June, U.S. Trustee Tracy Hope Davis objected to $16,500 in administrative legal expenses Mercer included in a $115,000 request for reimbursement sent to the bankruptcy court, saying Borders had retained Freeborn & Peters LLP not for legal counsel but for compensation consulting. The legal fees, she said, amounted to overhead...
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