The Cost of Bankruptcy

The Chicago Tribune today reports on its own bankruptcy case, noting that in the 15 months since the Chicago-based media company filed for bankruptcy, law firms have taken about a quarter of the Trib’s cash flow last year in fees — $138 million.

Usefully, the report details also some recently costly bankruptcy cases: Enron ($793 million), United Airlines ($296 million), Delphi (just under $400 million). Lehman Brothers is heading to break records — the legal fee cost is already at $457 million with a considerable way yet to go.