Global Brokerage has $3.12m in cash, with $3m to be used to pay advisory fees – King & Spalding
The reorganized company has advised K&S that in early March it had approximately $3,122,000 of cash on hand or in deposit.
The expenses associated with the Chapter 11 bankruptcy case of Global Brokerage Inc (OTCMKTS:GLBR), formerly known as FXCM Inc, are rather significant although the case lasted just 59 days.
King & Spalding LLP (K&S), counsel to Global Brokerage in the bankruptcy case, has recently submitted its application seeking allowance of compensation and reimbursement of expenses for the period commencing December 11, 2017 through and including February 8, 2018. In its Application, K&S seeks compensation in the amount of $561,300.13 and reimbursement of expenses in the amount of $15,225.87.
During the Compensation Period, K&S attorneys and paraprofessionals expended a total of 822.3 hours in connection with the necessary services performed. The bulk of the fees ($312,263.82) stem from K&S’s work on Global Brokerage’s Plan and Disclosure Statement.
More interestingly, K&S states in the documents, that Global Brokerage has informed it of its cash situation.
“The Reorganized Debtor has advised K&S that, as of the date hereof, it currently has approximately $3,122,000 of cash on hand or in deposit, approximately $3,000,000 of which is escrowed and will be used to pay the fees of its professionals. Other than professional fees, all administrative expenses of the Debtor have been paid in full”.
To shed more light on the expenses associated with K&S’s work with Global Brokerage before the start of the bankruptcy case, the documents state that in the ninety (90) day period prior to the commencement of this chapter 11 case, K&S invoiced Global Brokerage in the amount of $944,451.52 for services rendered to the Debtor in connection with the Debtor’s potential restructuring and the commencement of this chapter 11 case.
The sum requested by King & Spalding adds to the $2,278,571.43 in fees and $136.36 in expenses requested by Perella Weinberg Partners LP (PWP), which served as investment banker and financial advisor to Global Brokerage while the bankruptcy case proceeded. PWP participated in regular planning sessions and other periodic meetings with the Debtor and its legal counsel concerning process and strategy issues related to the bankruptcy, worked on certain financial analyses, prepared court filings and attended court hearings.
Prime Clerk LLC, administrative advisor to Global Brokerage, is seeking final allowance, approval and payment of fees for reasonable and necessary services rendered in the aggregate amount of $6,531.30.
There will be a Court hearing on the compensation applications on April 3, 2018. Objections are due by March 27, 2018.
