McDermott Will & Emery has submitted a new bill of $5 million to Voyager creditors for the third interim, leading to a total over $16 million.
The law firm representing crypto broker Voyager’s group of creditors has filed a bill for $5.1 million for work done from March to May. According to a summary cover sheet filed at the United States Bankruptcy Court Southern District of New York, this brings the total compensation required to $16.4 million.
McDermott Will & Emery’s filing shows the company has received $8.9 million of the $11.2 million compensation allowed so far. The filing shows that the total compensation bill for Voyager creditors covers 17,948 hours for professional and paraprofessional services rendered. According to the law firm, all services were done efficiently and effectively without any unnecessary duplications. In addition, McDermott Will & Emery assured that it minimized the costs of its services in many areas by using “talented junior attorneys and paraprofessionals”.
The $5.1 million bill covers the third interim fee period. The law firm’s bill for the first interim period, between July and October 2022, was $5.6 million. McDermott Will & Emery also added information on the second interim period, including a $5.5 million bill for November 2022 to February 2023. As of press time, Voyager creditors owe $7.5 million of the total bill.
Furthermore, the law firm included a summary of the services provided. Some of these include advising the creditors of their powers and duties according to bankruptcy law, as well as helping and advising with debtor consultations and negotiations.
Voyager Creditors Bill Result from Representation Following Bankruptcy Filing
Days after suspending trading and withdrawals, Voyager Digital filed for Chapter 11 bankruptcy last July at the Southern District of New York’s bankruptcy court. The company’s filing indicated up to $10 billion in liabilities to more than 100,000 creditors. At the time, Voyager said the reorganization was necessary so clients could access all of their funds in Voyager accounts.
Regardless of the problem, CEO Stephen Ehrlich said all customers with crypto in their accounts would receive compensation. According to Ehrlich, the compensation will combine common shares in the newly organized company, crypto in their accounts, Voyager tokens, and proceeds from the Three Arrows Capital (3AC) recovery. Voyager had loaned 3AC 350 million USDC and 15,250 BTC. 3AC went bankrupt last year and began liquidation, a large part of the reason Voyager also plunged into insolvency.
Last week, Voyager’s legal representative Kirkland & Ellis billed the crypto broker $1.1 million for work done in April. The filing indicates some attorneys billed up to $150,000 for the month, while others billed up to $2,000 per hour. The firm’s blended hourly rate was $1,313.18. Interestingly, Kirkland & Ellis billed Celsius Network $2.6 million for services rendered from July 13 to 31 last year.
In December 2022, Voyager accepted a Binance.US deal for acquisition. Reportedly worth $1.022 billion, the deal was the “highest and best bid for [Voyager’s] assets”. However, Binance.US eventually backed out of the deal even after approval from relevant stakeholders. Binance said it took this decision because of the “hostile and uncertain regulatory climate in the United States”.