Alexander Gallo Holdings Files for Bankruptcy in New York

[Kelli Combs (admin)]

Alexander Gallo Holdings Files for Bankruptcy in New York

 

By Dawn McCarty - Sep 7, 2011 12:48 PM ET

Alexander Gallo Holdings LLC, a provider of court reporting and litigation services, filed for bankruptcy protection.

The company today listed debt in the range of $100 million to $500 million and assets of less than $100 million in Chapter 11 documents in U.S. Bankruptcy Court in Manhattan.

The company and its units’ 30 largest creditors without collateral backing their claims are owed about $189 million, according to court documents. Gallo Holdings LLC, listed as the note holder representative, is the biggest, with a claim of $147.9 million, according to court papers.

Peachtree Holdings Inc. holds 100 percent of the equity interest in the Atlanta-based company. Ten affiliates, including Esquire Solutions and Esquire Litigation Solutions, also sought protection.

The case is In re Alexander Gallo Holdings LLC, 11-14220, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

[Martha R]

He's been rumored to have been in trouble for a while.   I'm sure the economy had something to do with it. I hope you all get paid.  I read an article that said business will continue under the restructuring, so they will have to pay their reporters.    500 million.  Wow, that's a lot of depos.

[Debbie]

500 million dollars owed to reporters or 500 million depos?

[Tricia McLaughlin]

Martha,

 

I have to agree with you.  It seems like the handwriting has been on the wall for this for a while.  I do hope the reporters get paid.  

I don't know how much of it is due to the economy or just their extraneous, outrageous rates.

[Greg Glover, CCVS, CLVS]

I am sure the bulk of the money is what they owe their investors and not what they owe the reporters.

[Rosalie DeLeonardis]

I knew something was going on with this company when they announced the great new payroll system, we will be in charge, check daily, blah, blah, blah, then they stopped automatic deposits, checks were being mailed from Atlanta directely to our homes, to all of a sudden checks were being mailed out on pay day from the Atlanta office to our local office, then on Monday they were putting the checks in the mail at 5:00 p.m., which were not getting picked up by the postal service until Tuesday, and then we wouldn't get our checks until three to four days after our actual pay date, attorneys started telling me how they hate Esquire, the amount the firms are charged is unbelievable, we as reporters would be surprised at the amount they pay us compared to what they charge, the big extravagant lunches they provide the attorneys when they have them in their offices.  I'm just glad I received my last (automatic deposit) check.  I sure in the heck would not work for them now that they have filed for restructuring.  

[Judy]

the amount the firms are charged is unbelievable, we as reporters would be surprised at the amount they pay us compared to what they charge,

I have a client that purchased a copy of an approx. 100-120 JD hearing, no exhibits.  I saw the size of the depo, and it was seriously no big deal, no extras.  They wanted to purchase ONLY an E-version, did not want or need a hard copy or anything else (I stress that because most firms are giving a "green" discount if they don't have to print up a copy).  They were billed over $900 for their downloaded copy. That's over 300% higher than other firms in this area charge for a copy (I'll betcha the reporter didn't get paid 300% over what she normally gets paid on copies).

So as I'm sitting in their conference room listening to the client and advising to get a detailed breakdown of the invoice, yada, yada, yada, in walks the atty for the deponent for that day's depo (another case).  Atty asks who we're talking about.  Atty then says, yeah, they're having the same issue with the same firm. And I'll tell you, from the sound of it, this CR firm has some serious receivables collectors working on their behalf.

But then there's the days that I have to hear the attorneys moan and groan that, what, no food?  Where's breakfast?  Where's lunch?  When I explain, in front of their clients, that nothing's free and I urge them to take a guess on who's footing the bill for that breakfast and lunch, they shrug and imply the other side is ultimately going to pay for it (when they win their case), so they don't care. 

Is this ever going to end?

 

[Kelli Combs (admin)]

The problem is now all of those reporters that did work for them are now out in the field looking for work from other agencies.   More competition for less work. 

[Rosalie DeLeonardis]

I think a lot of the regular reporters really haven't worked for the Sacramento office for the last four to five months and we have gotten steady work from other agencies already.  Thank God.

 

[Tricia McLaughlin]

How true that is, Kelli!  More reporters/competition than there is work.

[Kelli Combs (admin)]

I agree that we shouldn't be expected to be a catering service.  There is one firm I work for every once in a while and they always ask, "Oh, can you stop by a pastry shop and pick up some donuts or something on your way?"  No, I don't think so.  What do I look like, Mrs. Fields??

[Debbie]

I've heard and read that AG filed motions with the Court that were granted to continue to pay the reporters, videographers, scopists, etc. monies that were invoiced prior to September 7.   Some reporters complain about the reporters who work for AG and other nationwide firms and how wrong it is, but yet now are worried that they'll be moving in on their clients or work.  Can't have it both ways!   I work in a town that is cut throat.  If you even approach an attorney for his work, and his/her "regular" reporter finds out, some of those reporters will sling you through the mud.  And don't think for a minute that attorneys do not gossip, especially with a reporter they feel comfortable with.

Attorneys and people on their staff agree to these nationwide firm rates, and like anything else, complain when the bill is presented.  I don't think this restructuring of Esquire or AG is going to be detrimental to them, I think they will come back stronger than they ever were.  Of course, I wouldn't make a monetary wager :)  Just do that at the slot machines. 

[Kelli Combs (admin)]

They will come back stronger than ever if they can get any reporters to work for them again.   Now that a new company owns them, we will see what becomes of Esquire.  Pretty sad.  I used to love to work for them and always made over 100,000 just with this firm alone.  Haven't even contacted them in years, though.  Sort of the dreaded downward spiral at its finest.