In 2005, ASARCO LLC, a copper mining, smelting and refining company, was in financial trouble and filed for Chapter 11 bankruptcy. Relying on §327(a) and §1107(a) of the Bankruptcy Code, ASARCO retained two law firms to provide legal representation in the bankruptcy. In 2009, at the conclusion of the bankruptcy, ASARCO emerged with $1.4 billion dollars in cash and little debt.
The law firms representing ASARCO filed fee applications for compensation under §330(a)(1), which provides that a bankruptcy court "may award... reasonable compensation for actual, necessary services rendered...
