Lawyers making lots of money from Nortel's bankruptcy

Just a quick run through of the most recent 20 dockets on the Epiq website covers a number of agreements made by the court to pay all sorts of law firms who have come out of the woodwork to feast on Nortel's carcass.

We unsecured creditors have not received a penny yet we seem to have law firms representing us who have never told us what they are doing on our behalf. Akin Gump for example was awarded $523,199 in fees and $44,610 in expenses for work done in one month on our behalf. Capstone Advisory group was awarded $483,336 in fees and $27,108 in expenses also for supporting us during the month. I wonder what they have done for that money. I certainly haven't heard from them.

Nortel also is getting a lot of help. So many law firms enjoying the feast as well as advisory groups. Huron consulting for example has been paid $1,967,507 in fees and $233,037 expenses since March 2009 for their wonderful advice to Nortel in terms of restructuring. I can't say I am too thrilled with the value they added to the scene for over $2M.

All those costs are coming out of our claims. These people get paid first and they continue to get paid month after month as the case drags on. Once they have had their fill and the court case is finally over, we will get to fight over the slim pickings left as the vultures fly on to their next victim.

So much for the rights of employees, pensioners, and other creditors.