DETROIT -- AlixPartners L.L.P., the corporate advisory firm guiding General Motors' bankruptcy restructuring, was paid nearly $40 million before the automakers June 1 Chapter 11 filing and stands to earn more than $13 million as the process continues.
Al Koch, vice chairman and managing director of AlixPartners, will earn $835 per hour as GM's chief restructuring officer, the position he was appointed to on May 31.
In addition, nearly 70 AlixPartners employees will work on the GM case with hourly fees ranging from $180 per hour to $995 per hour, according to Kochs court declaration filed June 4.
AlixPartners, based in suburban Detroit, also is eligible for a success fee of $13 million to be earned if GM is able to sell most of its desirable assets in court to form a new company, 60 percent owned by the federal government, 12.5 percent owned by Canada, 17.5 percent by the UAW and 10 percent by existing GM bondholders.
The $13 million fee would be paid in two installments of $6.5 million -- one payment at the sales closing and the other at the first anniversary of the closing.
GM may also pay a discretionary fee to AlixPartners, if the bankruptcy reorganization yields extraordinarily positive results, and demonstrates that (AlixPartners) added significant value, according to documents attached to Kochs court declaration.
AlixPartner employees working on the case also may be appointed to management positions within the Old GM to lead parts of the company that remain in bankruptcy.