Posted 11/11/2013 12:00 am
Updated 5 months ago
As Allens Inc. navigates its way through its Chapter 11 bankruptcy case, the professional fees generated by the firms helping the Siloam Springs company will be in the millions.
An Allens’ budget shows that for the 16-week period ending Feb. 15, Allens will have spent more than $6 million on professional fees. That doesn’t include the amount it shelled out before it filed for bankruptcy, which is also in the millions.
Alvarez & Marsal, a global professional services firm specializing in turnaround and interim management, had received $2.5 million from Allens in the three months prior to Allens filing for Chapter 11, according to the filings.
Now that A&M is working on the case, it charges by the hour, and the hourly rates range from $875 to $275 depending on who at A&M is working on the case.
Lazard, an independent financial advisory and asset management firm that has offices around the world, has received $826,841 for work it did before the bankruptcy. Its fees include $100,000 a month and a $1.25 million fee for when the restructuring is complete.
And GA Keen Realty Advisors LLC will help Allens market its property. It will be paid on an hourly basis, and its fees range from $750 an hour for the company’s president to $375 for associates.
Of course, all the applications for employment have to be approved by a bankruptcy judge. A ruling on the applications wasn’t made as of last week.
Allens Property for Sale
It looks like Allens is preparing to put out “For Sale” signs on some of its properties.
In its recent Chapter 11 bankruptcy filing, the company, which processes canned and frozen vegetables, asked to hire real estate advisers.
Allens said in the court papers that it believes the services of GA Keen Realty Advisors will provide Allens “with invaluable knowledge regarding the various markets in which their properties are located, and help them develop an effective marketing and sales plan,” according to the Allens’ filing. GA’s services “will assist them in maximizing the value received for the properties to be sold.”
The filings didn’t say what properties might be put on the auction block. Allens has locations in Arkansas, North Carolina and Wisconsin.
A bankruptcy filing show Allens has debts of $279.9 million and assets of between $100 million and $500 million.