Wilbur Ross Says Results-Based System Can Curb Ch. 11 Fees

Law360, Chicago (April 19, 2013, 6:47 PM EDT) -- Private equity billionaire Wilbur Ross on Friday pitched ideas to rein in soaring bankruptcy professional fees to a blue-ribbon panel weighing major reforms to Chapter 11, arguing for a departure from hourly billing and toward a results-based system.

Ross, founder of W.L. Ross & Co., testified at the American Bankruptcy Institute’s spring meeting in Washington, D.C., that professional fees have greatly outpaced inflation in recent years and are the number one complaint among investors about the Chapter 11 process.

He pointed to a “multiplier effect” brought...
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