Kirkland Seeks More Than $48 Million for WeWork Bankruptcy Case

Kirkland & Ellis LLP is billing WeWork Inc. for over $48 million in attorneys’ fees and expenses for representing the co-working space company in its bankruptcy.

The Chicago-based Big Law behemoth asked the US Bankruptcy Court for the District of New Jersey to approve a final fee package on Friday. Kirkland represented WeWork in its bankruptcy proceedings from its initial filing in 2023 to the approval of its restructuring plan in June.

The firm billed $685 to $2,465 per hour for its attorneys, according to the Friday filing.

Paul Hastings LLP, which represented WeWork’s official committee of unsecured creditors, also requested the court to approve a final fee package, bringing its total bill to over $14 million. The firm represented the committee from November 2023 to June.

Paul Hastings billed an hourly rate for attorneys in the range of $470 to $2,300. Committee legal fees are paid by the bankrupt company in Chapter 11 cases.

WeWork folded into bankruptcy in 2023 after an aggressive growth plan burned through cash quickly and the pandemic caused a decline in office space demand. It emerged from bankruptcy in June with a plan to cut debt, drop unprofitable leases and move on from the legacy of its former CEO and founder Adam Neumann.

An entity backed by Yardi Systems, a company that developed an office management software with WeWork, owns 60% of the company. Former WeWork lender Softbank Group owns over 16% of the company’s equity.

Lower-ranking bondholders are set to receive 4 cents on the dollar, and other unsecured creditors are expected to get back 1 cent on the dollar.

Neither Kirkland nor Paul Hastings immediately responded to requests for comment.

The case is WeWork Inc., Bankr. D.N.J., Docket No. 23-19865-JKS, 11/6/23.