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THE CHAPTER 11 FINANCIAL ADVISORS by ProQuest

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It has been observed that large chapter 11 cases have become increasingly "professionalized." In particular, while debtor's counsel might once have handled the bulk of the reorganization, the debtor now routinely retains specialized professionals to address specific aspects of its case. Among the most controversial of these non-legal professionals have been the financial advisors, as they often earn transaction fees based on either the sale or reorganization of the debtor. Financial advisors are typically compensated with a combination of flat monthly fees and outcome-contingent transactional fees, and thus fit uneasily into the chapter 11 system, which is largely dominated by lawyers and former lawyers acting as judges, both of whom are most accustomed to billing hourly rates plus expenses. And then, of course, the most vocal commentators on professional fees are also lawyers, in the form of law professors. This short Article begins the discussion by considering a sample of financial advisors involved in chapter 11 cases filed in 2004.

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									                  THE CHAPTER 11 FINANCIAL ADVISORS
                                           Stephen J. Lubben*
   It has been observed that large chapter 11 cases have become increasingly
“professionalized.”1 In particular, while debtor’s counsel might once have
handled the bulk of the reorganization, the debtor now routinely retains
specialized professionals to address specific aspects of its case.2
    Among the most controversial of these non-legal professionals have been
the financial advisors, as they o
								
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