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Trustee In GM Bankruptcy Clamps Down On Fee Bonanza

Among the bills that GM may need to pay with their additional $30 billion infusion are massive fees due to two of the only big winners in the GM debacle, Evercore Partners and turnaround consultants AlixPartners. For their impressive work overseeing the automaker's complete collapse, Evercore and AlixPartners are seeking fees totalling a cool $130 million, which includes a combined $30.9 million in success fees. But the US Trustee overseeing the bankruptcy thinks the "staggering" and "excessive" fees aren't well deserved and is worried about one of AlixPartners' fees in particular. As a token of its appreciation, GM agreed to pay the firm a "discretionary fee" that has "no boundaries in amount and scope" and no clear method of calculation.
Trustee Objects to Fees for G.M. Advisers [Dealbook]