McDermott Will & Emery, the legal firm responsible for representing Voyager’s committee of unsecured creditors, has issued a bill of $5.1 million for their services rendered between March and May.
This latest invoice contributes to a total compensation charge of $16.4 million, surpassing the initial budget of $11.2 million allocated for the restructuring process.
To date, the creditors have disbursed $8.9 million toward the billed compensation.
Among the notable billings from McDermott attorneys during this period, $1 million was charged for 970.9 hours of work on plan and disclosure settlement.
This particular task involved engaging in discussions about potential sale options with the Debtors, meeting potential buyers, and reviewing objections presented by other stakeholders.
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It is worth noting that in previous billing periods, considerable efforts were dedicated to a potential asset sale to FTX, a deal that ultimately fell through with the exchange’s bankruptcy.
Furthermore, in addition to the fees incurred by McDermott Will & Emery, Voyager, the debtor, has also paid $1.1 million to the law firm Kirkland & Ellis for their representation throughout this case.
The market downturn experienced in 2022 led to a surge in bankruptcy filings, which proved to be lucrative for law firms.
Notably, firms such as FTX and Celsius have spent over $200 million and $50 million, respectively, on legal fees.
Critics of this situation argue that these exorbitant costs and lengthy legal processes have a detrimental effect on the funds available to creditors.
As more money is allocated to legal fees, the amount recoverable by creditors diminishes.
In summary, McDermott Will & Emery has presented a bill of $5.1 million to Voyager’s committee of unsecured creditors for their services rendered between March and May.
This brings the total compensation charged to $16.4 million, exceeding the initial budget. Additional expenses incurred by Voyager include a $1.1 million payment to Kirkland & Ellis.
While the legal industry has profited from the surge in bankruptcies, critics contend that the substantial costs and protracted legal proceedings adversely impact creditors’ potential recoveries.
