Bankruptcy and Restructuring Firm’s Compensation Bills Reach $16.4 Million with Latest Invoice.
McDermott Will & Emery, a law firm representing Voyager’s committee of unsecured creditors, has submitted a bill of $5.1 million for the services provided between March and May.
With the addition of this recent bill, the total compensation charged to the group has reached $16.4 million, exceeding the initial budget of $11.2 million set for the restructuring process. To date, the creditors have paid $8.9 million of the billed compensation.
McDermott attorneys have billed significant amounts for various tasks during the period, with one notable area being $1 million for 970.9 hours of work related to plan and disclosure settlement. This work involved discussions with the Debtors regarding sale options, meeting potential buyers, and addressing objections from other stakeholders.
In previous fee periods, a considerable amount of work was dedicated to exploring a potential sale of the company’s assets to FTX. However, this deal fell through due to the exchange’s bankruptcy, resulting in the termination of the efforts and associated costs.
In addition to the aforementioned fees, Voyager, the debtor in this case, also paid a bill of $1.1 million to the law firm Kirkland & Ellis for their representation and work on behalf of the exchange.
Law firms have benefited financially from the wave of bankruptcies triggered by the market downturn in 2022. Companies such as FTX and Celsius have incurred substantial legal expenses, with FTX spending over $200 million and Celsius spending $50 million on legal fees.
However, critics argue that the substantial costs and lengthy legal procedures associated with these cases diminish the funds available for creditors. As more money is allocated towards legal fees, there is a concern that creditors receive a smaller portion of the available funds.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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