The US Bankruptcy Trustee is moving to disqualify Kirkland & Ellis from representing General Growth in the company’s bankruptcy, which is pending in New York. The reason? General Growth also is represented by Weil Gotchal and the trustee believes “the danger of overbilling and duplication of billings is great.” Ya think? Overbilling squared.
By the way, Weil Gotschal was paid $14 million by General Growth for bankruptcy work before the Chapter 11 filing. Poor Kirkland was paid only $5 million.
ADDENDUM: The BK judge allowed both firms to represent General Growth. Oddsmakers in Las Vegas immediately set up a betting line as to whether there would be any $$ for creditors once firms finish their representation.