Voyager Digital Creditors To Pay $5.1M To Law Firm From March-May
- McDermott Will & Emery has charged Voyager Digital $5.1 million, increasing total compensation to $16.4 million, exceeding the authorized amount.
- The billing includes settlement work and discussions with debtors and potential buyers.
- Legal firms profit from recessions and bankruptcies, with FTX and Celsius spending millions on legal expenses during the 2022 market crisis.
McDermott Will & Emery, the legal firm that represents Voyager Digital’s unsecured creditor committee, has charged the airline $5.1 million for services done between March and May.
This additional payment increases the group’s total compensation to $16.4 million, beyond the $11.2 million authorized as part of the restructuring process. The debt has so far paid out $8.9 million of the billed compensation.
McDermott Will’s largest billing areas during this time period included planning and disclosing $1 million in billing for 970.9 hours of settlement work, which included discussing sale options with debtors, meeting with potential buyers, and reviewing proposals raised by other stakeholders’ objections.
Prior fee periods saw an extensive effort in this area on a prospective sale of the company’s assets to FTX, a transaction that fell through due to the exchange’s insolvency.
It was previously reported that in Voyager Digital’s bankruptcy proceedings, the Kirkland & Ellis law firm would bill Voyager Digital $1.1 million in attorney costs for April. Kirkland & Ellis is one of the world’s biggest legal firms, with a revenue of more than $6 billion. Celsius and BlockFi are among the crypto companies represented by the company in a Chapter 11 reorganization that occurred during the 2022 bear market.
Some of the firm’s highest-paid partners are said to charge up to $2,000 per hour, while others charge hundreds of thousands of dollars each month.
While recessions and bankruptcies are frequently detrimental to businesses, the reverse is true for legal firms. The 2022 market crisis resulted in several failures, which were beneficial for law firms, with FTX and Celsius spending more than $200 million and $50 million, respectively, on legal expenses.
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