Celsius Faces $52 Million Legal Fees Amid Bankruptcy

Rising Legal Costs in Celsius Bankruptcy

The ongoing bankruptcy proceedings of Celsius, a prominent crypto lender, have led to significant financial demands from legal and advisory services. Over a span of four months, the cost has escalated to over $52 million. This surge in expenses underscores the financial burden the company faces amidst its legal challenges.

Legal and Advisory Fee Breakdown

Celsius has been billed nearly $20 million by the UK-based law firm Kirkland & Ellis for services rendered between July and October. White & Case LLP, representing the creditors, has requested $10.2 million for the same period. Additionally, Alvarez & Marsal North America LLC, serving as the debtors' financial advisor, has asked for $6.5 million.

Stakeholder Concerns Over Costs

The escalating costs have resulted in discontent among Celsius' stakeholders. Many have expressed frustration over the substantial fees, urging the company's unsecured creditors' committee to address these concerns. Stakeholders are particularly worried about the depletion of resources due to high legal expenses.

Independent Fee Examination

In response to these concerns, Celsius' Official Committee of Unsecured Creditors acknowledged the expensive nature of bankruptcy proceedings. They have agreed to appoint an independent professional fee examiner to scrutinize all professional fees. This decision aims to ensure that the costs are justified and managed efficiently.

Conclusion

The financial strain on Celsius during its bankruptcy proceedings highlights the challenges faced by companies in similar situations. With legal and advisory fees mounting, the company and its stakeholders are seeking ways to manage these expenses effectively. The appointment of an independent fee examiner is a step towards addressing these financial concerns.