Consultancy corporations and attorneys dealing with FTX’s chapter have charged the failed change over $145 million for his or her five-month providers, in accordance with courtroom filings.
The businesses concerned in FTX’s chapter case embrace regulation corporations Sullivan & Cromwell, Landis Rath & Cobb, and Quinn Emanuel Urquhart & Sullivan. Others are administration consulting corporations Alvarez & Marsal North America and AlixPartners.
Sullivan Cromwell has billed FTX roughly $70M
Legislation agency Sullivan & Cromwell (S&C) has charged $69,304,890 for its five-month providers to the bankrupt change, in accordance with a courtroom submitting.
Inside the first month of its service, S&C sought compensation of $9.5 million, describing its providers as “some of the difficult, multi-disciplinary workouts by any regulation agency.”
Subsequent providers have attracted double digits charges from the chapter attorneys. In accordance with the courtroom submitting, the agency charged FTX $15.4 million for its providers in December 2022 and charged the change $27,512,580.6 this yr.
In all of those fees, S&C has all the time maintained that 80% of the costs had been “precise, affordable and vital.”
In addition to that, the regulation agency mentioned it incurred further bills of roughly $450,000 for its work through the 5 months.
In the meantime, S&C’s appointment as FTX’s advisor was fraught with points. FTX founder Sam Bankman-Fried accused the regulation agency of pressuring him to file for chapter due to the charges it stood to earn. 4 U.S. lawmakers additionally objected to its appointment, citing a battle of curiosity over its earlier relationship with the bankrupt change.
Nonetheless, FTX’s CEO, John Ray, defended the regulation agency, saying its providers had been important to safeguard the perfect curiosity of FTX and its stakeholders.
Alvarez & Marsal fees over $50M
Monetary advisor to FTX, Alvarez & Marsal, has charged the bankrupt change $53,129,184.5 for its providers between November 2022 and March 2023.
Inside the first two months of its providers, Alvarez & Marsal charged FTX over $15 million for its providers. The consultancy agency has subsequently charged $37.5 million for its providers in 2023.
Throughout this era, Alvarez & Marsal mentioned it incurred further bills of $1.4 million.
In accordance with its filings, a few of its providers for FTX embrace avoidance actions, monetary evaluation, enterprise operations, due diligence, accounting procedures, and so on.
Like S&C, the agency has maintained that 80% of the costs had been “precise, affordable and vital.”
Others charged round $21M
Different corporations like Landis Rath & Cobb, Quinn Emanuel Urquhart & Sullivan, and AlixPartners charged FTX round $21 million for his or her providers.
In accordance with courtroom filings, Landis Rath & Cobb charged the bankrupt change $3.04 million. Of this charge, the agency revealed that the courtroom had accredited $1.9 million and its further bills of $47,257.
Legislation agency Quinn Emanuel Urquhart & Sullivan charged FTX $8.95 million for its 5 months of service. Per the courtroom submitting, the agency has incurred a further $11,854.
In its submitting, administration consulting agency AlixPartners mentioned it had charged the bankrupt change $10.6 million — of which $4.97 million has been paid. The agency added that FTX paid $35,353 from its $107,638 incurred bills.
