Greenberg Traurig, the main law firm handling First Magnus’s bankruptcy case, has submitted a payment request totaling $1,357,511.75.
That request, dated Tuesday, is down about $19,000 from an earlier request, which included 31.8 hours of “non-working travel time,” according to filings.
The request included work by more than a dozen legal professionals. The highest paid attorney billed $610 per hour.
I suspect some former employees will feel a little miffed by that information. The company failed suddenly in August, laying off somewhere between 5,500 and 6,000 nationwide workers (depending on the source of the estimate) and didn’t give them final paychecks. Company executives did pay each Tucson employee
a $2,000 gift from the executives’ own funds. Several former employees have e-mailed me telling me they still haven’t been paid.
Find all the Star’s reporting on the First Magnus collapse at this site.
I know that you and some other readers think we should not continue following the First Magnus bankruptcy so closely. As business editor, I am Christie’s supervisor at the Star, and I disagree. The collapse of First Magnus was one of the most important stories in Tucson business over the last year or more. It affected hundreds of employees, probably thousands of family members, and shook the local business community. I think we are obligated to follow the bankruptcy closely.
If this were the only story Christie, as real estate reporter, were covering, I’d agree. That would be too much coverage. But she has published, just in the last four days: a story about the first LEED-certified spec office building in Tucson; a column about the Ollanik Construction bankruptcy and other items; and a story about how local community banks are weathering the real-estate slump.
I agree. Larry – Why is it that you feel we shouldn’t be told that the lawyers are getting paid and not the employees? You need to stop reading these blogs, you are out to lunch.
Thank you for your response. While I agree with you that the First Magnus Story WAS one of the most important business stories in probably the last decade, I do believe that it is an old story. Unless you are truly uncovering NEWS, such pieces either seem ignorant or slanted.
Is the reporter truly so awestruck by a $1 million attorney bill on a bankruptcy proceeding involving hundreds of millions of dollars? Mr. Steller, that is par for the course. No news there. Or is the reporter hell bent on slanting a story with comments such as, “I suspect some former employees will feel a little miffed by that information…”? I am sorry sir, but I find either choice unacceptable for a leading newspaper from a metro area of over 1 million people.
I understand that the reporter does produce other articles of value, but maybe devote some time to other truly newsworthy stories that are not being addressed by your publication. Let’s get a little more courageous than beating the dead horse. Some suggestions:
1. Follow-up on the New York Times story on the connections between our own local real estate magnate Don Diamond, and Mr. McCain.
2. Investigative story into what the true TIF bonding capacity currently stand at given the municipal bond market woes. What could the city really afford to build downtown?
3. Investigative story into the local real estate market value losses, and the disconnect between actual values and the Pima County assessor’s values.
4. Expand on stories written. We know banks must be having issues with loans on their books. What large projects are in trouble? What are their losses in market value? Let’s not wait to break the story until it’s a matter of public record. What is happening to the contractors that have worked or are working on these projects? Are residents having their warranties met?
I could go on. My point is that there are much more newsworthy stories out there could truly address more pressing current issues. Please know that I critique because I care about our community and our availability to quality and unbiased press.
Thank you,
Larry
While I agree that the stories you mentioned have some merit, they belong in the main Business section, not its blog, Larry.
I would take another gander at what the purpose of Clocking In is, as written in that nifty box to the right of Christie’s post.
Blogs in general are intended to provide bits of info – some with more in-depth background and information – but are rarely intended to serve as a place where breaking news is covered. For that, head to the main site; it will save you much stress.
As for me, I’m fascinated by this whole First Magnus debacle, and will continue to read updates – even as you continue to hate on them.
There is no more story to report on about First Magnus. They went out of business LASTAUGUST. The droning on and on ad nauseum reflects poorly on the Star’s business editor. Surely, there must be some other business news worthy of this reporter’s time and effort.
As a victim of the “Boys” of First Magnus I appreciate the articles. I just wish they would pay all of us before the spend millions to open Stonewater Mortgage – joined with Nova Home Loans. It is not just the employees who were not paid there were MANY other people who lost their jobs because the “Boys” at First Magnus did not pay any vendors either – many of whom were sole proprietors who then had to layoff some of their employees. It was quite a ripple effect – and the “Boys” still to this day fail to recognize how many people they hurt. Sleep well Tommy Jr. Your public awaits you.
'Clocking In' is the joint blog of the Star’s Business news staff. We're punching out news tips, outtakes and other morsels for people with an appetite for local business, consumer and workplace news. Have some news of your own to share? Be sure to drop us a line using one of the e-mail addresses below.
Christie:
Enough with your fixation on this topic. Give me some real news will you?
Larry
— Larry Linus 04/23/2008 04:02 PM #
Mr. Linus, thanks for your comment.
I know that you and some other readers think we should not continue following the First Magnus bankruptcy so closely. As business editor, I am Christie’s supervisor at the Star, and I disagree. The collapse of First Magnus was one of the most important stories in Tucson business over the last year or more. It affected hundreds of employees, probably thousands of family members, and shook the local business community. I think we are obligated to follow the bankruptcy closely.
If this were the only story Christie, as real estate reporter, were covering, I’d agree. That would be too much coverage. But she has published, just in the last four days: a story about the first LEED-certified spec office building in Tucson; a column about the Ollanik Construction bankruptcy and other items; and a story about how local community banks are weathering the real-estate slump.
To me, that’s real news that she’s giving you.
— Tim Steller 04/23/2008 04:42 PM #
I agree. Larry – Why is it that you feel we shouldn’t be told that the lawyers are getting paid and not the employees? You need to stop reading these blogs, you are out to lunch.
— Radford 04/23/2008 09:32 PM #
Mr. Steller:
Thank you for your response. While I agree with you that the First Magnus Story WAS one of the most important business stories in probably the last decade, I do believe that it is an old story. Unless you are truly uncovering NEWS, such pieces either seem ignorant or slanted.
Is the reporter truly so awestruck by a $1 million attorney bill on a bankruptcy proceeding involving hundreds of millions of dollars? Mr. Steller, that is par for the course. No news there. Or is the reporter hell bent on slanting a story with comments such as, “I suspect some former employees will feel a little miffed by that information…”? I am sorry sir, but I find either choice unacceptable for a leading newspaper from a metro area of over 1 million people.
I understand that the reporter does produce other articles of value, but maybe devote some time to other truly newsworthy stories that are not being addressed by your publication. Let’s get a little more courageous than beating the dead horse. Some suggestions:
1. Follow-up on the New York Times story on the connections between our own local real estate magnate Don Diamond, and Mr. McCain.
2. Investigative story into what the true TIF bonding capacity currently stand at given the municipal bond market woes. What could the city really afford to build downtown?
3. Investigative story into the local real estate market value losses, and the disconnect between actual values and the Pima County assessor’s values.
4. Expand on stories written. We know banks must be having issues with loans on their books. What large projects are in trouble? What are their losses in market value? Let’s not wait to break the story until it’s a matter of public record. What is happening to the contractors that have worked or are working on these projects? Are residents having their warranties met?
I could go on. My point is that there are much more newsworthy stories out there could truly address more pressing current issues. Please know that I critique because I care about our community and our availability to quality and unbiased press.
Thank you,
Larry
— Larry Linus 04/23/2008 10:03 PM #
While I agree that the stories you mentioned have some merit, they belong in the main Business section, not its blog, Larry.
I would take another gander at what the purpose of Clocking In is, as written in that nifty box to the right of Christie’s post.
Blogs in general are intended to provide bits of info – some with more in-depth background and information – but are rarely intended to serve as a place where breaking news is covered. For that, head to the main site; it will save you much stress.
As for me, I’m fascinated by this whole First Magnus debacle, and will continue to read updates – even as you continue to hate on them.
— WanderingMex 04/24/2008 12:57 PM #
I have to agree with Larry.
There is no more story to report on about First Magnus. They went out of business LAST AUGUST. The droning on and on ad nauseum reflects poorly on the Star’s business editor. Surely, there must be some other business news worthy of this reporter’s time and effort.
— A. Person 04/24/2008 03:22 PM #
As a victim of the “Boys” of First Magnus I appreciate the articles. I just wish they would pay all of us before the spend millions to open Stonewater Mortgage – joined with Nova Home Loans. It is not just the employees who were not paid there were MANY other people who lost their jobs because the “Boys” at First Magnus did not pay any vendors either – many of whom were sole proprietors who then had to layoff some of their employees. It was quite a ripple effect – and the “Boys” still to this day fail to recognize how many people they hurt. Sleep well Tommy Jr. Your public awaits you.
— formerFMFC 04/24/2008 06:34 PM #