Reviewing first day motions from a company’s chapter 11 docket, and more specifically the CEO’s declaration, can be a great way to learn exactly what happened in the days/weeks leading up to a bankruptcy filing. The company spends millions of dollars every month on expensive lawyers (Kirkland & Ellis in the case of Toys “R” Us), investment bankers (Lazard), turnaround advisors (Alvarez & Marsal), claims administrators, etc., who all spend many sleepless nights in the days leading up to a filing trying to make sure the first day motions are as informative as possible.
With those high expectations, you can imagine our surprise when we opened the Toys “R” Us CEO’s declaration to find this “preliminary statement”:
Yes, Kirkland & Ellis was paid $800 an hour (ish) to type up the Toys “R” Us jingle in a court filing. Bravo!
This post was published at Zero Hedge on Sep 20, 2017.
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