Voyager Creditors Charged $5.1 Million for Legal Services Between March-May
A crypto platform Voyager filed for bankruptcy a year ago, in July 2022, due to substantial losses caused by the bear market and the collapse of the Terra blockchain.
In the aftermath, the company’s creditors requested the return of their assets. However, the legal fees kept stacking, leading them to a total amount of $16.4 million.
Voyager creditors were unsecured, and after the company fell due to the crypto market crash, the committee of creditors sought legal help from McDermott Will & Emery, who were happy to represent them.
Recently, however, the legal team submitted an invoice for the clients, amounting to $5.1 million.
Adding the sum to a number of other services, the committee of unsecured Voyager creditors is facing a total bill of $16.4 million.
Meanwhile, it is worth noting that the initially projected amount they were required to pay was $11.2 million, established in the restructuring process.
So far, creditors managed to collect and contribute $8.9 million to pay the cost of getting legal help.
However, with the amount skyrocketing to nearly double that amount, concerns have emerged regarding the diminishing funds meant for distribution.
In an attempt to explain the cost, McDermott Will & Emery’s invoice revealed that the lawyers billed $1 million for 970.9 hours of work. Their efforts were dedicated to creating a plan and disclosure settlement.
However, the billing stands out from their other notable charges, as the legal team had to meet potential buyers, discuss the matters with the debtors, explore potential sale possibilities, and more.
They were even put in a position where they addressed concerns other stakeholders expressed.
The legal firm claims that the agreement to sell the company’s assets to FTX fell
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