Financial Accounting Blog

Sunday, January 25, 2004

Accountingweb.com reports that MCI will recoup $9.5 million paid to Goldman Sachs for advice just prior to filing for bankruptcy in the wake of a massive accounting fraud at the company.
Goldman was hired in 2002 to help with raising capital, arranging financing, discussing mergers and selling company assets, the Associated Press reported.

The company is paying its own bankruptcy law firm as much as $3 million a month, but it is also required to pay for its creditors' lawyers and financial advisers, paying $150 million in fees during the past year. More than $40 million of that paid for the company’s investigation into the massive accounting scandal that led to the biggest bankruptcy case on record.