Deal advisors on OneWeb’s bankruptcy and rescue have so far netted more than $25m (£19m) in fees, according to a New York court filings.
Lawyers, bankers and public relations firms have secured millions steering the collapsed satellite firm to a $1bn rescue deal by the British government and India’s Bharti Enterprises.
Amid the complex bidding process, which saw OneWeb attract interest from Amazon, Eutelsat, China’s Geely and Canada’s Telesat, white-shoe law firm Milbank had raked in $8.7m in fees, as of June.
An auction in July was ultimately won by the British bid. Since then, however, the bankruptcy case has dragged on over how much money is owed to unsecured creditors as well as guiding the deal through US regulators.
OneWeb is developing a satellite constellation that will consist of 650 broadband satellites, able to provide rural internet to remote parts of the world. It is also being primed to work as a back-up to sat-nav, which the Government hopes could provide redundancy for the GPS network.
The company, which is headquartered in London with operations in the US, filed for bankruptcy in March after funding from its biggest backer SoftBank fell through.
In a filing revealing costs to the end of June, PR firm FTI Consulting had taken home $3.7m. Paul Hastings, which acted for unsecured creditors, had fees of $1.9m. Financial advisor Guggenheim Securities, acting for OneWeb, had fees of $2.4m.
All told, at least $25m has been billed, according to a Telegraph analysis. In a chapter 11 bankruptcy such fee payments are usually earmarked at the start of the case and paid by the debtor.
On Friday, the Government formally announced the deal had closed, lifting OneWeb out of bankruptcy protection, although a further legal hearing is expected in early December over costs.