McDermott Will & Emery, a law firm representing Voyager’s committee of unsecured creditors, has billed the group an additional $5.1 million for the work it completed from March to May. This brings the total compensation charged to the group to $16.4 million, exceeding the $11.2 million budgeted for the restructuring process. So far, the creditors have paid out $8.9 million of this billed compensation.
The largest areas of billings from McDermott attorneys for the period include $1 million for 970.9 hours of work on plan and disclosure settlement. This work involves discussing sale options with the Debtors, meeting potential buyers, and examining objections presented by other stakeholders. This comes on top of a $1.1 million bill Voyager, the debtor, paid to the law firm Kirkland & Ellis for work it has done to represent the exchange.
The 2022 market downturn has led to many bankruptcies, which have been profitable for law firms. FTX and Celsius have spent over $200 million and $50 million, respectively, on legal fees. Critics argue that these high costs and long legal processes reduce the amount of money available for creditors.