key takeaways:
- Voyager’s creditors are burdened by rising legal fees, with a $5.1 million pending invoice.
- McDermott lawyers were paid $1 million for their work on the plan and disclosure settlement, which included meetings and stakeholder involvement.
In a significant development in the legal battle surrounding Voyager Creditors, a court ruling has ordered the creditors to pay a staggering $5.2 million in legal fees.
The case, which has been closely followed by financial enthusiasts and investors, has been marred by controversy and drawn-out legal proceedings.Ā
New York law firm McDermott Will & Emery has submitted a request for reimbursement of $5.1 million from the creditors of Voyager Digital, a bankrupt cryptocurrency brokerage firm. The law firm’s bill covers legal services provided between March 1 and May 13, 2023.
According to court documents filed on July 3, McDermott Will & Emery has directed the invoice for legal fees to the “Official Committee of Unsecured Creditors.” The documents further disclose that the law firm charged an hourly rate of $1,026.76 for the services rendered during this specific time frame.
This recent decision has left many wondering about the implications it holds for the creditors and the wider financial landscape.
This decision comes two months after Voyager Digital announced its intention to liquidate its assets and stop operations following Binance.The United States has withdrawn from the $1 billion transaction.
The legal firm’s responsibilities included directing the committee through bankruptcy proceedings, dealing with debtors and other interested parties, and managing the appropriate paperwork.
The third and last invoice from McDermott Will & Emery brings the total claimed compensation to $16.48 million since July 5, 2022. Voyager is said to have paid $8.97 million of the total.
The recent filing has resulted in the overall legal fees of the Voyager credit committee, covering the period from July 22, 2022, to May 18, 2023, amounting to nearly $16.5 million. Out of this total, approximately $9 million has already been disbursed.
According to the submitted documents, the filing indicates a “blended hourly rate” of $1,026.76 applicable to all timekeepers involved in the case, including attorneys.
Despite their efforts, a previous deal for the transfer of the company’s assets to FTX fell through, resulting in large expenses during past fee periods. Despite these problems, Voyager had already paid Kirkland & Ellis, the legal representation for the exchange in the court action, $1.1 million.
