In a legal drama akin to navigating treacherous crypto waters, law firms Kirkland & Ellis and Cole Schotz P.C. have clinched a jaw-dropping $21 million in legal fees representing the defunct cryptocurrency lender, BlockFi, throughout its tumultuous Chapter 11 proceedings.
Kirkland and Cole Schotz $21M Legal Fees: $21M for Legal Crusaders
In a decisive move on Tuesday, U.S. Bankruptcy Judge Michael B. Kaplan wielded his gavel to greenlight a staggering compensation package for the legal heavyweights. The lion’s share, a whopping $19.8 million, will land in the coffers of Kirkland & Ellis, acting as co-counsels to the debtor, while Cole Schotz P.C., playing the role of the local counsel, secures a cool $1.1 million. Meanwhile, Moelis & Company LLC, the financial maestro in this legal symphony, will pocket $4.4 million during the compensation period spanning from August 1 to November 28.
Judicial Nod: Fees Deemed “Reasonable and Necessary”
Judge Kaplan declared the accrued fees and expenses as “reasonable and necessary,” emphasizing their meticulous consideration and approval through an exhaustive process. Notably, the fee applications navigated unscathed through various recommendations by the fee examiner, Elise S. Frejka.
Kirkland and Cole Schotz $21M Legal Fees: A Herculean Legal Feat
The legal powerhouse Kirkland & Ellis, in its filed application on November 20, passionately argued that the colossal fee was well-earned. They contended that the advisers to the estate had “accomplished a great deal” in a case brimming with “significant legal issues, many of which are complex and matters of first impression.”
Cryptocurrency Rollercoaster: BlockFi’s Bankruptcy Saga Unveiled
BlockFi, once a cryptocurrency titan, declared bankruptcy in the wake of FTX, a crypto exchange, experiencing its own cataclysmic collapse. The fallout resulted in FTX abandoning a $400 million rescue loan deal intended to salvage BlockFi. The prepetition agreement between the two companies birthed a legal maelstrom, with claims and counterclaims echoing through the courtroom. Ultimately, these disputes found resolution within the Chapter 11 deal, shaving FTX’s initial $5 billion claim down to $500 million and subordinating it to BlockFi customers.
Judicial Approval and Settlements: BlockFi’s Bankruptcy Chapter Closes
In a climactic turn of events, the presiding judge granted approval to BlockFi’s bankruptcy plan in September. The plan outlined a meticulous wind-down of the estate, coupled with settlements reached with multiple crypto firms embroiled in intertwined claims.
Legal Vanguard: BlockFi’s Legal Avengers Revealed
BlockFi found its legal guardians in the formidable team comprising Michael D. Sirota and Warren A. Usatine of Cole Schotz PC, Joshua A. Sussberg and Christine A. Okike of Kirkland & Ellis LLP, and Richard S. Kanowitz and Kenric D. Kattner of Haynes and Boone LLP.
