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Voyager Creditors Billed $5.1M for March-May by Law Firm

Voyager Creditors Billed $5.1M for March-May by Law Firm

CoindeskCoindesk2023/07/04 05:52
By:Sam Reynolds

Latest bill brings total compensation bills to $16.4 million for bankruptcy and restructuring firm.

Voyager's bankrupcy has left creditors in the lurch. (Danny Nelson/CoinDesk)

McDermott Will Emery, a law firm representing Voyager’s committee of unsecured creditors, has billed the group $5.1 million for the

This latest bill brings the total compensation charged to the group to $16.4 million, above the $11.2 million that was budgeted as part of the restructuring process. So far, the creditors have paid out $8.9 million of this billed compensation.

Some of the largest areas of billings from McDermott attorneys for the period include $1 million billed for 970.9 hours of work on plan and disclosure settlement, which involves discussing sale options with the Debtors and meeting potential buyers and examining objections presented by other stakeholders.

In prior fee periods, significant work in this category was done on a , a deal that collapsed with the bankruptcy of the exchange.

All of this comes on top of a $1.1 million bill Voyager, the debtor, paid to the law firm Kirkland Ellis for work it's done to represent the exchange (the debtors in this case).

The 2022 market downturn led to many bankruptcies, which have been profitable for law firms, with firms like FTX and Celsius spending over $200 million and $50 million, respectively, on legal fees.

However, critics argue that these high costs and long legal processes as more and more of it is spent on legal fees.

Edited by Parikshit Mishra.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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