Report Says Lehman Owes Kekst for Crisis Consulting
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Report Says Lehman Owes Kekst for Crisis Consulting

The bankruptcy of Lehman Brothers has left financial public relations firm Kekst & Company with an unpaid $400,000 bill for crisis communications advice to the investment bank and its then-chief executive Dick Fuld, according to a report in the New York Post.

Paul Holmes

NEW YORK—The bankruptcy of Lehman Brothers has left financial public relations firm Kekst & Company with an unpaid $400,000 bill for crisis communications advice to the investment bank and its then-chief executive Dick Fuld, according to a report in the New York Post.

 

Kekst & Company has a strict policy of not discussing client or former client matters and so declined to comment on the reports; nor was there any comment from Lehman. The Post says tbat while the firm has not yet filed a claim with the court handling the Lehman's bankruptcy, “it is expected to be among hundreds of smaller creditors filing claims in the coming weeks.”

 

Kekst had been working with Lehman for more than a year, the paper says, and during the summer had advisers working in-house at the company’s offices. But bills went unpaid for several months, in part because of turnover in Lehman's communications department. When Kekst requested payment on September 14, the company’s board of directors had already decided to file for Chapter 11 bankruptcy protection and therefore were precluded from making any payments to creditors.

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