Within the three months ending Oct. 31, defunct crypto alternate FTX has been burning by means of roughly $53,000 each hour on chapter attorneys and advisers, the newest spherical of compensation filings present.
Court docket filings from Dec. 5 to Dec. 16 present that the chapter attorneys have charged not less than $118.1 million between Aug. 1 and Oct. 31. Over the 92 days, this quantities to $1.3 million per day or $53,300 per hour.
The biggest invoice got here from the administration consulting agency Alvarez and Marshall, which charged $35.8 million for its providers for the three months.
Coming in second place was international legislation agency Sullivan & Cromwell, which charged $31.8 million for its providers. The hourly fee for Sullivan & Cromwell’s providers averaged $1,230 per hour.
International consulting agency AlixPartners charged $13.3 million within the interval for skilled providers regarding forensic investigations. Quinn Emanuel Urquhart & Sullivan charged $10.4 million in the identical interval, whereas a number of different billings from smaller advisory companies added as much as over $26.8 million.
Figures shared by a pseudonymous FTX creditor in a Dec. 17 publish on X (previously Twitter) recommend the whole authorized charges which have been absolutely paid because the FTX chapter case started is roughly $350 million.
BTW @lopp this estimates $1.45B of remaining skilled charges for a complete of $1.8B. The Property is at the moment charging $0.5B per 12 months and bankruptcies aren’t brief endeavors.
Up to now, listed here are the charges which have been petitioned in slightly below 1 12 months (~$350mm has been paid): https://t.co/fZhMyTE3B1 pic.twitter.com/5p6at5ZbWy
— Mr. Purple ️ (@MrPurple_DJ) December 17, 2023
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In the meantime, an earlier report filed on Dec. 5 by the court-appointed charge examiner, Katherine Stadler, recognized “significant areas of concern” with the billings submitted by the bigger advisory companies, together with Sullivan & Cromwell, Alvarez & Marshall and others between Might 1 and June 31.
“The Fee Examiner identified apparently top-heavy staffing, apparently excessive meeting attendance, fees related to non-working travel time, and various technical and procedural deficiencies with respect to some time entries (including vague and lumped entries),” states the report relating to the billings submitted by Alvarez & Marshall.
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