The judge overseeing Detroit's historic bankruptcy filing has made it clear that he expects full disclosure of professional fees billed in the case, but the city will ask tomorrow for an exception: fees paid to its banker, Reuters reported yesterday. Detroit has argued that Barclays Capital, a unit of Britain's Barclays PLC, needs to keep the fee structure of a $350 million loan confidential because it is commercially sensitive information. The city also argued that if the fee arrangement were public, it might drive up the cost of the loan. "Since it's a public entity with so many diverse stakeholders, it's important for the general public to feel that the process was fair," said John Penn, a bankruptcy attorney with Perkins Coie in Dallas. "I would not be surprised if the judge required disclosure." Barclays' DIP loan to Detroit is typical of loans that come with confidential fee letters. After the bank advances the money to the city, Barclays plans to carve up the loan and sell it to investors rather than hold onto it.
