Terraform Creditors’ Bankruptcy Adviser Bills Prompt Pushback

The Justice Department’s bankruptcy monitor and the administrator for the Terraform Labs Pte. Ltd.'s bankruptcy questioned a financial adviser’s “unreasonable” billing practices for its work representing an unsecured creditors’ committee.

The US Trustee objected to Genesis Credit Partners LLC’s application for $4 million in the Chapter 11 case, accusing the firm of seeking unreasonable compensation, duplicate billing, overstaffing, and excessive meal and technology expenses in a Thursday filing with the US Bankruptcy Court for the District of Delaware.

Terraform, a digital asset company, declared Chapter 11 bankruptcy in January 2024. A judge approved its liquidation plan in September after the ...