Bankrupt crypto brokerage Voyager Digital is obligated to pay $1.1 million to its legal adviser, Kirkland & Ellis, for fees and expenses associated with its involvement in the company’s bankruptcy proceedings in April.
According to the available documents, Kirkland & Ellis law firm implemented a blended hourly billing rate of $1,313.18 for the provision of various services throughout April. The cumulative fees assessed for the legal services rendered by both attorneys and paralegals amounted to a figure surpassing $1.4 million.
Certain members holding high positions within the law firm charged an hourly rate exceeding $2,000 for their professional services.
Kirkland & Ellis is recognized for its representation of several cryptocurrency companies undergoing bankruptcy proceedings, with clients including BlockFi and Celsius.
Voyager’s bankruptcy plan was approved by the United States Bankruptcy Court for the Southern District of New York on May 17, 2023. The third bankruptcy plan was proposed on May 5 after Binance.US backed out of plans to buy $1 billion worth of Voyager assets on April 25.
In July 2022, Voyager filed for Chapter 11 bankruptcy protection due to the substantial impact of the crypto credit crisis, which caused severe repercussions across multiple lenders and brokers in the industry. Under the previous leadership of Steve Ehrlich, Voyager had been a publicly traded company in Canada.
At the time of its bankruptcy filing, Voyager disclosed liabilities ranging from $1 billion to $10 billion, signifying the extent of its financial obligations and the circumstances that led to the decision to seek bankruptcy protection.
Related: Voyager app set to reopen for customer withdrawals as soon as June 20
Voyager isn’t alone in paying hefty fees as it navigates its bankruptcy process. FTX, another company embroiled in a bankruptcy process, accrued an extensive sum surpassing $120 million in financial and legal advisory fees during the period spanning from Feb. 1 to April 30.
Cointelegraph reached out to Voyager and Kirkland & Ellis for more information, but didn’t receive a response by publication.
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Sourced from cointelegraph.com.
Written by Amaka Nwaokocha on 2023-06-29 20:30:00.
