2 years ago
Consultancy firms and lawyers handling FTX’s bankruptcy person charged the failed speech implicit $145 cardinal for their five-month services, according to tribunal filings.
The companies progressive successful FTX’s bankruptcy lawsuit see instrumentality firms Sullivan & Cromwell, Landis Rath & Cobb, and Quinn Emanuel Urquhart & Sullivan. Others are absorption consulting firms Alvarez & Marsal North America and AlixPartners.
Sullivan Cromwell has billed FTX astir $70M
Law steadfast Sullivan & Cromwell (S&C) has charged $69,304,890 for its five-month services to the bankrupt exchange, according to a tribunal filing.
Source: Court FilingWithin the archetypal period of its service, S&C sought compensation of $9.5 million, describing its services arsenic “one of the astir complicated, multi-disciplinary exercises by immoderate instrumentality firm.”
Subsequent services person attracted treble digits fees from the bankruptcy lawyers. According to the tribunal filing, the steadfast charged FTX $15.4 cardinal for its services successful December 2022 and charged the speech $27,512,580.6 this year.
In each of these charges, S&C has ever maintained that 80% of the charges were “actual, tenable and necessary.”
Besides that, the instrumentality steadfast said it incurred further expenses of astir $450,000 for its enactment during the 5 months.
Meanwhile, S&C’s assignment arsenic FTX’s advisor was fraught with issues. FTX laminitis Sam Bankman-Fried accused the instrumentality steadfast of pressuring him to record for bankruptcy due to the fact that of the fees it stood to earn. Four U.S. lawmakers besides objected to its appointment, citing a struggle of involvement implicit its erstwhile narration with the bankrupt exchange.
However, FTX’s CEO, John Ray, defended the instrumentality firm, saying its services were indispensable to safeguard the champion involvement of FTX and its stakeholders.
Alvarez & Marsal charges implicit $50M
Financial advisor to FTX, Alvarez & Marsal, has charged the bankrupt speech $53,129,184.5 for its services betwixt November 2022 and March 2023.
Source: Court FilingWithin the archetypal 2 months of its services, Alvarez & Marsal charged FTX implicit $15 cardinal for its services. The consultancy steadfast has subsequently charged $37.5 cardinal for its services successful 2023.
During this period, Alvarez & Marsal said it incurred further expenses of $1.4 million.
According to its filings, immoderate of its services for FTX see avoidance actions, fiscal analysis, concern operations, owed diligence, accounting procedures, etc.
Like S&C, the steadfast has maintained that 80% of the charges were “actual, tenable and necessary.”
Others charged astir $21M
Other firms similar Landis Rath & Cobb, Quinn Emanuel Urquhart & Sullivan, and AlixPartners charged FTX astir $21 cardinal for their services.
According to tribunal filings, Landis Rath & Cobb charged the bankrupt speech $3.04 million. Of this fee, the steadfast revealed that the tribunal had approved $1.9 cardinal and its further expenses of $47,257.
Source: Court FilingLaw steadfast Quinn Emanuel Urquhart & Sullivan charged FTX $8.95 cardinal for its 5 months of service. Per the tribunal filing, the steadfast has incurred an further $11,854.
Source: Court FilingIn its filing, absorption consulting steadfast AlixPartners said it had charged the bankrupt speech $10.6 cardinal — of which $4.97 cardinal has been paid. The steadfast added that FTX paid $35,353 from its $107,638 incurred expenses.
Source: Court FilingThe station Lawyers, consultancy firms complaint bankrupt FTX implicit $145M successful 5 months appeared archetypal connected CryptoSlate.
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