Lawyers, Financial Advisers Only Winners in LTV's Endless Bankruptcy
Once upon a time, the LTV Corp. bankruptcy was high drama. Now, the case has degenerated into the Full Employment Act for bankruptcy lawyers and advisers, who have knocked down some $150 million in fees from LTV since the case started in July</br></br>Once upon a time, the LTV Corp. bankruptcy was high drama. Now, the case has degenerated into the Full Employment Act for bankruptcy lawyers and advisers, who have knocked down some $150 million in fees from LTV since the case started in July 1986.	But itÛªs the deal from hell for bankruptcy investors, who have lost at least $1 billion speculating in LTV securities.</br></br>For a while, it looked as if this case might actually get finished in our lifetime. In March, the company came to tentative terms with the federal agency that is its most important creditor, and it even managed to get its act together long enough to file a proposed reorganization plan in May.</br></br>But despite the support of the company's management and the federal Pension Benefit Guaranty Corp., the reorganization plan appears doomed because other LTV creditors vow to kill it. "Tlicy led with their chinsÛÓthey had no one signed up but the PBGC," said Robert Miller, who represents an unofficial committee of creditors with claims on LTVÛªs aerospace subsidiary.</br></br>ItÛªs a sign of the endless nature of this case that Miller's client is the case's second unofficial aerospace committee. Most members of the first unofficial aerospace committee have sold their claims, but the committee still exists.