Fat Paydays for GM Law Firms

Fat Paydays for GM Law Firms

You knew the lawyers would make out on the General Motors' bankruptcy, and they are.

GM's primary law firm, Weil, Gotshal & Manges LLP, earned $54 million in fees and expenses in the six months leading up to GM's June 1 bankruptcy filing, according to a recent court filing by the law firm and reported on by the Wall Street Journal . The firm's lawyers are billing GM at a rate of $355 to $950 per hour, the Journal reported.

And there's more. The paper said much of the $54 million didn't relate strictly to GM's Chapter 11 so more big paydays could be in store for the firm.

Meantime, other law firms made out as well as GM paid Honigman Miller Schwartz and Cohn LLP $15 million for one year of work leading up to the bankruptcy, and Jenner & Block LLP collected $11 million in pre-bankruptcy fees and expenses.

The two firms, like Weil, are awaiting court approval to represent GM during its bankruptcy.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.