It seems that Christmas has come early for Kirkland & Ellis.
The law firm, consistently one of the highest-grossing in Big Law and recently after naming its largest-ever partnership class, filed court papers last week detailing $41.5 million in retainer payments it received on behalf of bankrupt clients Rite Aid Corp. and WeWork Inc.
SmileDirectClub Inc., another insolvent company advised by Kirkland, also disclosed last month it paid $2.5 million to the firm.
Kirkland, known for its large tier of nonequity partners, disclosed last month that seven of its 205 new partners come from its lucrative restructuring practice. That group made headlines last year for its work representing several cryptocurrency companies that filed for Chapter 11 protection.
Distressed companies frequently turn to Kirkland for turnaround work that requires large teams of lawyers navigating complex legal and financial issues. Kirkland didn’t respond to a comment request about its work for WeWork and Rite Aid, whose bankruptcy billables are broken down below.
WeWork Inc.
Kirkland disclosed in a Nov. 20 application for employment in WeWork’s bankruptcy that it was paid a $1 million retainer on Sept. 13. The firm subsequently received special purpose retainers totaling $21 million, according to the submission from Kirkland restructuring partner Steven Serajeddini.
In August, WeWork hired Kirkland and added former top Milbank bankruptcy partner Paul Aronzon to its board. Kirkland lawyers are billing between $685 and $2,245 per hour. WeWork is hoping to use the bankruptcy process to shed and renegotiate leases, although some landlords are fighting back.
WeWork, which filed for bankruptcy in early November after promoting Pamela Swidler to its top legal job this year, is also being advised by lawyers from Munger, Tolles & Olson; Cole Schotz; and Canada’s Goodmans.
Munger Tolles received a $250,000 retainer payment from WeWork on Oct. 30 and an additional $884,000 on Nov. 1, per a court filing in the case. The firm, which is serving as special counsel to WeWork, submitted Nov. 5 an invoice for nearly $1.1 million in fees to draw down nearly the entirety of its retainer payments. Munger Tolles lawyers are billing between $765 to $2,245 per hour.
Cole Schotz, which is serving as local counsel to WeWork in its Chapter 11 case in Newark, N.J., was paid more than $211,000 in the 90 days prior to the co-working company’s bankruptcy. Cole Schotz currently holds a retainer of nearly $939,000, according to a court filing in the case. Cole Schotz lawyers are billing between $375 to $1,475 per hour for their services.
Rite Aid Corp.
Kirkland disclosed in a Nov. 22 application… (truncated)