Thursday, August 5, 1999

Bankruptcy bills top
$7 mil at Liberty House

Star-Bulletin staff


Liberty House More than $7.4 million in professional fees have been billed to the Liberty House bankruptcy, now in its 18th month and the most costly in the state's history.

Recent documents in U.S. Bankruptcy Court in Honolulu show applications totaling $6,825,187 between the March, 1998 reorganization bankruptcy filing and June of this year.

The figure includes fees and personal expenses of lawyers, accountants and consultants in the complex Chapter 11 case.

The documents, filed by court-appointed fee administrator John Candon, show an additional $601,684 in fees -- some disputed and some already paid by Liberty House -- bringing total billings to $7,426,871 through May.

One additional cost was $408,196 in legal fees paid by Liberty House for a $50 million financing package obtained from Bank of America last year.

Another is $193,275 in legal and consulting fees of several firms currently being challenged by Candon.

The bankruptcy court, which controls assets in a bankruptcy, already has approved $5,115,288 in reimbursements through January.

Currently before the court are applications for February through May totaling $1,574,145.

Liberty House filed for bankruptcy on March 19, 1998, listing $182 million in debts.

The court on Sept. 17 is to consider competing reorganization plans for the company.

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