Lehman advisers paid $641 million

Lehman Brothers Holdings Inc., the investment bank liquidating in bankruptcy,
paid its lawyers and other advisers $641.9 million in 16 months since September
2008, according to a regulatory filing.

The
restructuring firm Alvarez & Marsal LLC, which provided Lehman with its
current chief executive officer, Bryan Marsal,
led the payments with $233 million in fees for “interim management” through
January, according to the filing yesterday with the U.S. Securities and
Exchange Commission.

Weil Gotshal
& Manges LLP
of New York collected $149.5 million for acting as
the investment bank’s lead bankruptcy law firm. Milbank Tweed Hadley &
McCloy LLP got $42.4 million for advising Lehman’s creditors’ committee.

Lehman
and its affiliates reported cash holdings of $17.6 billion on Jan. 31, an
increase from $17.2 billion a month earlier.

Lehman,
once the world’s fourth-biggest investment bank, is liquidating in bankruptcy
to pay creditors. Its payments to advisers haven’t faced major challenges such
as those in the case of bankrupt automaker Chrysler LLC, which is using U.S.
Treasury loans to wind itself down.

Lehman filed the biggest
U.S.
bankruptcy in September 2008 with assets of $639 billion. Creditors include UBS AG,
the New York Giants and Abu Dhabi Investment Authority as well as individuals
who hold Lehman bonds.

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