SF Gate: Bankruptcy lawyers bill United $59.7 million

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Wednesday, January 28, 2004 (AP)
Bankruptcy lawyers bill United $59.7 million
ERIK AHLBERG, Dow Jones Newswires


   (01-28) 20:39 PST (AP) --
   CHICAGO (Dow Jones/AP) -- The law firm representing United Airlines'
parent company in its bankruptcy proceedings, has requested $59.7 million
in fees and expenses for the first year of the case, according to court
documents.
   Of that amount, $55.9 million is compensation for the attorneys, which is
sometimes more than $700 an hour, and $3.8 million is for expenses such as
copy making, airfare and court filing costs. The documents were made
available electronically Wednesday.
   UAL Corp., parent of United Airlines, filed for federal bankruptcy
protection on Dec. 9, 2002. The Elk Grove Village, Ill.-based airline,
which is undergoing a massive overhaul of its business operations and cost
structure, this week said it remains on track to emerge from bankruptcy
during the first half of the year.
   The recent disclosure, which includes the period from the bankruptcy
filing itself through Dec. 31, 2003 -- or just over a year -- was made as
part of a monthly fee and expense summary required of all professionals
under bankruptcy law. The submissions are then reviewed and sometimes
revised by a formal fee committee before the actual disbursement of funds.
   "Bankruptcy costs are truly expensive but necessary," said UAL spokeswom=
an
Jean Medina. She said that a firm's proposed fee structure is also
reviewed by the company and the creditors committee before work is allowed
to begin.
   The law firm, Kirkland & Ellis, so far has received "approved" fees and
expenses of $44.8 million and $3.3 million, respectively.
   In December, lead attorney James H.M. Sprayregen, a Kirkland partner,
billed for slightly more than 60 hours of work at $730 an hour for total
compensation of $43,873.
   Kirkland partner David Seligman billed $118,128 for more than 250 hours =
of
work at a rate of $460 an hour.

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Copyright 2004 AP

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