Tab for Lehman bankrutpcy now $731M — and counting

Alvarez & Marsal LLC, the liquidator of bankrupt Lehman Brothers Holdings Inc., has collected $262.2 million in fees over 18 months, topping a quarter-billion dollars for its work, according to a regulatory filing.

The restructuring firm, which provided Lehman with its current chief executive officer, Bryan Marsal, is billing the bankruptcy estate for “interim management,” according to today’s filing with the U.S. Securities and Exchange Commission. The defunct investment bank has paid all of its lawyers and advisers $731.6 million through March 31, it said in the filing.

Lehman, once the world’s fourth-biggest investment bank, is liquidating to pay creditors. Its payments to managers and advisers haven’t faced major objections such as those in the case of bankrupt automaker Chrysler LLC, which used U.S. Treasury loans to wind itself down.

Marsal didn’t immediately respond to an e-mail seeking comment. About 150 Alvarez & Marsal employees are working full time at Lehman, according to Kimberly Macleod, a spokeswoman for Lehman.

Lehman and its affiliates reported cash holdings of $16.6 billion on March 31, down from $17.2 billion at the start of the month. Previously, its cash had risen by as much as $1 billion a month.

Lehman filed the biggest U.S. bankruptcy in September 2008 with assets of $639 billion. Creditors include Goldman Sachs Group Inc., UBS AG, the New York Giants and Abu Dhabi Investment Authority as well as individuals who hold Lehman bonds.