K&W Cafeterias is the latest company to hire a financial advisor during its Chapter 11 bankruptcy proceedings, a trend that's become increasingly popular. Attorneys for debtors routinely handle all associated finances, but over the last 20 years, more organizations have opted to hire separate financial advisors.
Once a company files for bankruptcy, all further expenses must be approved by the bankruptcy court. K&W filed for bankruptcy on September 2. It then submitted a request to hire a financial advisor to assist with the sale of its company. K&W is considering offers from both buyers and partners.
But getting approval for a financial advisor can be complicated, as fee structures for these professionals are much different than they are for lawyers.
Lawyers, and j...