En apoyo de la Comisión de Equidad
For Information Only of email sent to trustee to support.
Dear Mr Mc Mahon, US Trustee
.....
My presentation takes its information mostly from the publicly posted documents of Kurtzman Carson Consulting website re Washington Mutual. Indeed it appears that the unofficial representations and representatives of equity interests, formed in the last 18 months, also used that site for information as to what is happening and that site, I believe, became the default formal communication tool of the governance people of the debtors to its constituents.
I, specifically assert that the board of directors of Washington Mutual, both immediately before seizure and perpetuated until now, perfected the model that equity holders can be wiped out and that whilst they have a stewardship responsibility of corporate assets and business preservation, they have no accountability to anyone.
The courtroom of Hon Justice M Walrath does not perform an expenditure audit function and the courts are clearly not intended as such. They authorize the engagement of professionals proposed by the debtors and then await for the debtors acceptance of services and subsequent billings.
It is easy for the debtor to mistake the process where the court approve engagements to mean that the court passed judgement on the debtors selection of those firms, or of the continued retention and usefulness of each one, of the results they delivered for the scope of their engagement, or the value of their engagement to the big picture.
Unless of course if the big picture presented to the firms are to wipe out the equity holders as contemplated by JPMC, then the selected and late disclosures of billings and fees, and the now non disclosure of fees except for affidavits of service, makes sense.
Point in reference for the comment are as follows:
Alvarez Marsal _ Restructuring Advisors, public information on KC website shows that for services for Oct 1- 31 2009 (court Doc # 1933) we were charged $2.2 million in addition to mostly airfare travel & hotels of $100,000. Who asks if the services can be more effective and efficient with in-house personnel. Accumulated charges from the commencement of the engagement were not shown on the application as was previously done in earlier fees applications.
Weil Gotshal _ Counsel for Debtors, again we see (court Doc # 1981 & # 2096) for Aug fees of $451,557 & Sept of $805,270. Accumulated charges from the commencement of the engagement were not shown on the application as was previously done in earlier fees applications.
Elliot Greenleaf _ Special Litigation & Conflict Counsel. Court Doc # 2053, #2165, #2166 show cumulative charges of $440,172 up to the month of November, 2009. Whilst the details of billings were not made public,the amount was clear enough to know the expenditure of estate funds.
Quinn Urquhart Etc_Special Litigation & Conflict Counsel. Court Doc # 2160, #2056 show cumulative charges of $1,049,452 up to the month of October, 2009. Whilst the details of billings were not made public,the amount was clear enough to know the expenditure of estate funds.
Akin Gump Strauss Hauer & Feld_ Creditors Counsel. Court Doc # 2141 shows a monthly charge of fees $439,460 AND expenses of $414,436. Court Doc # 2127 for October fees were not made public but only the affidavits for service of the document was shown.
Akin Gump Strauss Hauer & Feld_ Creditors Counsel. Court Doc # 2141 shows a monthly charge of fees $439,460 AND expenses of $414,436. Court Doc # 2127 for October fees were not made public but only the affidavits for service of the document was shown.
Specifically, estimating the monthly overhead fees of this continuing operation seems to be about $6 million (fees of $5 in addition to another $1 million in expenses). It is predatory to submit a request for the fees of the official equity committees to be capped in total to one half of the monthly expenses of the restructuring advisors>
Following From The Above:
It cannot be assumed that the court supervision means that all professional services are relevant, continues to relevant, are provided, in a cost effective manner, and in the interest of all stakeholders - including the equity holders.
As the KC website has ceased providing details of services in each firms billings and now provides court documents that attaches only the affidavits of service for fees claimed by firms, the unrepresented equity holders are now disabled from following up on the status of their investment losses remediation process, in two ways. Firstly from following the steps being taken by the debtors and the costs incurred and, secondly, depriving the stakeholders from effectively evaluating the fees application and possibly objecting to these fees submissions for the courts approval.
The non claim of fees, or the concealment of the fees documents submitted by firms as Alvarez (from November 2009 onwards) , Weil ( from September 2009 onwards), Quinn from October 2009, Akin from November onwards; imposes an artificial barrier on timeliness of information for stakeholders. Such late disclosure or submissions may be based on attempts to filter billings, conceal matters of process that should be open to the public, allow for the published monthly financial operating statement to be flawed as they may contain estimates and accruals made for fees to be billed, but the substance of those accruals are hidden from the parties receiving the monthly operations statements and even the court.
The arrogance of the debtors to suggest a cap of $250,000 on the total billings of the official committee of the equity holders, can be dismissed by analysed and looking at the cost of the other persons above.
I trust that the debtor will be guided by its own concern for preservation of assets by directing that as is common industry practice that all professional billing rates do include the time spent in making up the bills for services, THAT no professional should be allow to charge us for the time spent to charge us.
As I do not have a contact for the Official Committee as a favour, kindly copy to them for me.
Thank You
.....
Shareholder ( Pre & Post)