Saturday, August 18, 2018

Puerto Rico bankruptcy’s fee examiner asks court to modify process

By on May 11, 2018

SAN JUAN – The court-appointed fee examiner in Puerto Rico’s bankruptcy-like process has asked the U.S. District Court to modify the examining process to exempt certain professionals and expand his authority to review all fee applications filed under the Promesa law’s Title III cases regardless of their relation to the cases.

One of the requests would exempt McKinsey & Co. from the fee review because the firm did not have a time-keeping record of its work for all its employees. The fee examiner is asking the court to allow the island’s Financial Oversight and Management Board to examine $6.5 million in fees, to determine whether the firm should get paid. The fees are for the May 3, 2017, to Sept. 30, 2017, and Oct. 31, 2017, to Jan. 31, 2018, periods.

He also asked the court to exempt Andrew Wolfe for work performed as consultant to the board because of the “modest” amount requested in fees, $100,000.

The examiner also said professionals who request $30,000 or less a month in flat-fee compensation or requests that are $120,000 or less in hourly compensation for “any four-month interim fee period” should also be exempted. Instead, the board should examine their fees to ascertain they comply with Promesa, he said.

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