The defunct AAF is paying its bankruptcy attorney $500,000, but that will not cover contested matters in the bankruptcy process, according to a filing the attorney made this afternoon. The AAF filed for Chapter 7 bankruptcy April 17, with $48M in liabilities. The petition was filed by Bracewell, a Houston-based law firm. In Bracewell’s filing today, the firm disclosed it had already received $250,000 for preparing the 269-page petition and was due another $250,000 from Ebersol Sports Media. ESM is one of the seven companies tied to AAF co-founder Charlie Ebersol that filed for bankruptcy.
Bracewell said it would represent ESM at meetings with creditors and preparing further filings. But the fee does not cover adversarial proceedings. There are lawsuits filed against ESM currently that allege fraud in how the finances of the AAF were represented, so it is possible those allegations could be raised in the bankruptcy process.
