Voyager’s Creditors Charged $5.2M By Law Firm in Latest Bill, Adds up to $16.5M

Creditors of bankrupt crypto lending platform Voyager Digital will pay more than $5 million for the third interim fee period, which ended in mid-May.

In total, McDermott Will & Emery charged Voyager’s group of creditors about $16.5 million for its services for less than a year.

legal expenses

McDermott Will & Emery, the legal firm representing the official committee for unsecured creditors in the Voyager Digital Holding Inc. , to pay $5.17 million to the creditors group for the third interim fee period on March 1, 2023 and May 18. 2023.

For the entire fee period from 22nd July 2022 to 18th May 2023, with the law firm invoice Creditors group $16.48 million.

Initially, $11.2 million was set aside to be paid to the law firm for her services. To date, the group of creditors has paid $8.9 million. A large portion of the bill — $1 million — is owed on the planning and disclosure settlement. Discussing sales options, interviewing buyers, and examining objections were important in this part of the job. It mostly involved selling Voyager to FTX.

Failed deals

After filing for bankruptcy, Voyager Digital was twice as close to being acquired. In October, FTX won the bid to buy it for $1.4 billion, leading Binance to win the race. However, the creditors opposed the deal because it included a provision providing immunity, or “broad exemptions,” from future bankruptcy claims for senior Voyager executives. Later, FTX landed in a liquidity crunch that led it to file for bankruptcy.

After suffering huge losses due to exposure to Singapore-based hedge fund Three Arrows Capital (3AC), Voyager Digital filed for Chapter 11 bankruptcy in July 2022.

In April, Binance.US pulled out of a $1 billion deal to buy Voyager assets after issues with local regulators.

“While our hope throughout this process was to help Voyager clients gain access to their cryptocurrencies, the hostile and uncertain regulatory climate in the United States has resulted in an unpredictable operating environment affecting the American business community,” Binance’s US subsidiary Binance said in a statement. entire”.