The bankruptcy proceedings of Iowa City’s Mercy hospital have led to a contentious battle over legal fees, with applications exceeding £13m. A significant portion, £5.1m, is earmarked for Chicago’s McDermott Will & Emery, while New York’s ToneyKorf Partners has billed £4.8m. The Liquidating Trust Oversight Committee has raised concerns, stating: “The sale price of the major asset in this case, the hospital, was £26m,” highlighting that the fees requested are “more than half of what was recovered.” U.S. Bankruptcy Judge Thad Collins has expressed his intention to hold hearings on the fees, emphasizing, “I believe the lawyers should get paid for their work.” However, pensioners have objected to the high rates, noting that “standard rates for practitioners here top out at roughly $500 an hour.” The proceedings continue as stakeholders seek resolution amidst the financial turmoil.