HTML Document View

Full title: Monthly Application for Compensation (Seventh) of Curtis, Mallet-Prevost, Colt & Mosle LLP as EB-5 Counsel for the Debtor and Debtor In Possession, for Allowance of Monthly Compensation and for Monthly Reimbursement of All Actual and Necessary Expenses for the period March 1, 2021 to March 31, 2021. Filed by Curtis, Mallet-Prevost, Colt & Mosle LLP. Objections due by 5/14/2021. (Attachments: # 1 Notice # 2 Exhibit A) (Amer, Nader) (Entered: 04/23/2021)

Document posted on Apr 22, 2021 in the bankruptcy, 12 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

(the “Application”) for monthly and interim allowance of compensation for professional services rendered by Curtis to the Debtor for the period of March 1, 2021 through and including March 31, 2021 (the “Compensation Period”) and reimbursement of actual and necessary expenses incurred by Curtis during the Compensation Period, pursuant to sections 330 and 331 of title 11 of the United States Code, as amended (the “Bankruptcy Code”), Rule 2016 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), Rule 2016-2 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware (the “Local Rules”), the United States Trustee’s On October 14, 2020, this Court granted the Curtis Retention Application pursuant to the Order Authorizing the Employment and Retention of Curtis, Mallet-Prevost, Colt & Mosle LLP as EB5 Counsel Nunc Pro Tunc to August 25, 2020Set forth on the foregoing “Compensation by Category” is a summary, by subject matter category, of the time expended by Curtis timekeepers billing time to the Debtor’s case during the Compensation Period. In addition, Curtis’ hourly rates for bankruptcy services are comparable to the rates charged by Curtis, and by comparably skilled practitioners in other firms, for complex corporate and litigation matters, whether in court or otherwise, regardless of whether a fee application is required. WHEREFORE, Curtis respectfully requests that this Court: (a) allow Curtis’ interim compensation in the amount of $12,067.50 for actual, reasonable, and necessary professional services rendered on behalf of the Debtor during the Compensation Period; and (b) authorize and direct the Debtor to pay to Curtis the amount of $9,654.00, which is equal to 80% ($9,654.00) of Curtis’ allowed interim compensation; and (c) grant such other and further relief as is just and proper. Dated: April 23, 2021 CURTIS, MALLET-PREVOST, Wilmington, Delaware COLT & MOSLE LLP /s/

List of Tables

Document Contents

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE --------------------------------------------------------------- X : In re: Chapter 11 : KLAUSNER LUMBER ONE LLC Case No. 20-11033 (KBO) : Debtor.1 Objection Deadline: : May 14, 2021 at 4:00 p.m. (ET) --------------------------------------------------------------- X SEVENTH MONTHLY FEE APPLICATION OF CURTIS, MALLET-PREVOST, COLT & MOSLE LLP AS EB-5 COUNSEL FOR THE DEBTOR AND DEBTOR IN POSSESSION, FOR ALLOWANCE OF MONTHLY COMPENSATION AND FOR MONTHLY REIMBURSEMENT OF ALL ACTUAL AND NECESSARY EXPENSES INCURRED FOR THE PERIOD MARCH 1, 2021 THROUGH MARCH 31, 2021 Name of Applicant: Curtis, Mallet-Prevost, Colt & Mosle LLP Authorized to Provide Professional Services to: Debtor Date of Retention: October 14, 2020 Nunc Pro Tunc to August 25, 2020 Period for which compensation and reimbursement is sought: March 1, 2021 through March 31, 2021 Amount of compensation sought as actual, reasonable, and necessary: $12,067.50 Amount of reimbursement of expenses sought as actual, reasonable, and necessary: $0.00 This is a x monthly and interim ___ final application 1 The last four digits of the Debtor’s United States federal tax identification number are 9109. The Debtor’s mailing address is Klausner Lumber One LLC, P.O. Box 878, Middleburg, VA 20118.

1

If this is not the first application filed, disclose the following for each prior application:
Table 1 on page 2. Back to List of Tables
Dated Filed Period Covered Requested None Approved None
None None Fees Expenses Fees Expenses
10/26/2020 08/25/2020 – 09/30/2020 $5,509.50 $0.00 $5,509.50 $0.00
11/24/2020 10/01/2020 – 10/31/2020 $6,559.50 $19.46 $6,559.50 $19.46
12/29/2020 11/01/2020 – 11/30/2020 $7,176.50 $211.90 $7,176.50 $211.90
01/26/2021 12/01/2020 – 12/31/2020 $9,471.00 $174.95 $9,471.00 $174.95
02/24/2021 01/01/2021 – 01/31/2021 $17,375.50 $185.93 $17,375.50 $185.93
03/29/2021 02/01/2021 – 02/28/2021 $6,994.50 $0.00 N/A N/A

2

COMPENSATION BY PROFESSIONAL KLAUSNER LUMBER ONE, LLC (Case No. 20-11033 (KBO)) March 1, 2021 through March 31, 2021
Table 1 on page 3. Back to List of Tables
Name
of
Professional
Position of the Applicant, Area of
Expertise, Number of Years in that
Position
Hourly
Billing
Rate
Total
Billed
Hours
Total
Compensation
Jason Wright Partner in Litigation Department since
2019.
$885 9.20 $8,142.00
Thomas Laurer Partner in Corporate International
Department since 2001.
$840 1.30 $1,092.00
Peter J. Buenger Counsel in Restructuring & Insolvency
Department since 2019.
$730 2.50 $1,825.00
John. D. Molino Associate in Restructuring & Insolvency
Department since 2019.
$400 0.50 $200.00
Andrew Estes Paralegal in Restructuring & Insolvency
Department since 2019.
$245 3.30 $808.50
Total None None 16.80 $12,067.50
GRAND TOTAL: $12,067.50 None None None None
BLENDED RATE: $718.30 None None None None

3

COMPENSATION BY PROJECT CATEGORY KLAUSNER LUMBER ONE LLC (Case No. 20-11033 (KBO)) March 1, 2021 through March 31, 2021
Table 1 on page 4. Back to List of Tables
Project Category Total Hours Total Fees
Legal Services for Bankruptcy Proceeding: 9.60 $8,437.50
Administrative Fees: 7.20 $3,630.00
TOTAL 16.80 $12,067.50

4

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE ------------------------------------------------------------ X : In re: Chapter 11 : KLAUSNER LUMBER ONE LLC Case No. 20-11033 (KBO) : Debtor.2 Objection Deadline: : May 14, 2021 at 4:00 p.m. (ET) ------------------------------------------------------------ X SEVENTH MONTHLY FEE APPLICATION OF CURTIS, MALLET-PREVOST, COLT & MOSLE LLP AS EB-5 COUNSEL FOR THE DEBTOR AND DEBTOR IN POSSESSION, FOR ALLOWANCE OF MONTHLY COMPENSATION AND FOR MONTHLY REIMBURSEMENT OF ALL ACTUAL AND NECESSARY EXPENSES INCURRED FOR THE PERIOD MARCH 1, 2021 THROUGH MARCH 31, 2021 Curtis, Mallet-Prevost, Colt & Mosle LLP (“Curtis”), as EB-5 counsel for the debtor and debtor in possession in the above-captioned chapter 11 case (the “Debtor”), submits this application (the “Application”) for monthly and interim allowance of compensation for professional services rendered by Curtis to the Debtor for the period of March 1, 2021 through and including March 31, 2021 (the “Compensation Period”) and reimbursement of actual and necessary expenses incurred by Curtis during the Compensation Period, pursuant to sections 330 and 331 of title 11 of the United States Code, as amended (the “Bankruptcy Code”), Rule 2016 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), Rule 2016-2 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware (the “Local Rules”), the United States Trustee’s Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses filed under 11 U.S.C. § 330 by 2 The last four digits of the Debtor’s United States federal tax identification number are 9109. The Debtor’s mailing address is Klausner Lumber One LLC, P.O. Box 878, Middleburg, VA 20118.

5

Attorneys in Larger Chapter 11 Case, effective November 1, 2013 (the “U.S. Trustee Guidelines”), and the Order Establishing Procedures for Interim Compensation and Reimbursement of Expenses for Retained Professionals [Docket No. 132] (the “Interim Compensation Procedures Order”). In support of this Application, Curtis represents as follows: JURISDICTION This Court has jurisdiction over this Application pursuant to 28 U.S.C. §§ 157 and 1334. This is a core proceeding within the meaning of 28 U.S.C. § 157(b)(2). Venue in this district is proper pursuant to 28 U.S.C. §§ 1408 and 1409. The statutory predicates for the relief requested herein are sections 330 and 331 of the Bankruptcy Code, as supplemented by Bankruptcy Rule 2016, Local Rule 2016-2, the U.S. Trustee Guidelines, and the Interim Compensation Procedures Order. BACKGROUND On April 30, 2020 (the “Petition Date”), the Debtor filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code. The Debtor is operating its business and manages its properties as debtor in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On May 21, 2020, the Office of the United States Trustee for the District of Delaware (the “U.S. Trustee”) appointed an official committee of unsecured creditors (the “Creditors’ Committee”).

6

CURTIS’ RETENTION After commencing this chapter 11 case, the Debtor engaged Curtis to assist in advising with regards to any EB-5 Immigrant Investor Program related issues (the “EB-5 Matters”). These EB-5 Matters require specialized knowledge and experience in the relevant subject areas in which the Debtor’s other counsel do not engage. By retaining Curtis as counsel on the EB-5 Matters (“EB-5 Counsel”), the Debtor believes it will effectively and efficiently prosecute and defend the EB-5 Matters as necessary. On September 8, 2020, the Debtor filed the Application of the Debtor for Order Authorizing the Retention and Employment of Curtis, Mallet-Prevost, Colt & Mosle LLP as EB5 Counsel Nunc Pro Tunc to August 25, 2020 [Docket No. 371] (the “Curtis Retention Application”). On October 14, 2020, this Court granted the Curtis Retention Application pursuant to the Order Authorizing the Employment and Retention of Curtis, Mallet-Prevost, Colt & Mosle LLP as EB5 Counsel Nunc Pro Tunc to August 25, 2020 [Docket No. 452] (the “Curtis Retention Order”). INTERIM COMPENSATION PROCEDURES ORDER The Court entered the Interim Compensation Procedures Order on June 5, 2020. The Interim Compensation Procedures Order sets forth the procedures for interim compensation and reimbursement of expenses for all Professionals in this case. In particular, the Interim Compensation Procedures Order provides that Professionals may file and serve a Monthly Fee Application no earlier than the 20th day of each month following the month for which compensation is sought, for interim approval and allowance of compensation for services rendered and reimbursement of expenses incurred during the immediately preceding month. Parties in interest will have 21 days (or the next business day if

7

such day is not a business day) after the service of a Monthly Fee Application to object to the requested compensation for services rendered and reimbursement of expenses incurred. Provided that there are no objections to such Monthly Fee Application filed within 21 days after the service of the Monthly Fee Application, the Professional may file a certificate of no objection (the “Certificate of No Objection”) with the Court. Upon the filing of a Certificate of No Objection, the Debtor is authorized to pay such Professional 80 percent of the fees and 100 percent of the expenses requested in such Monthly Fee Application. If a partial objection to the Monthly Fee Application is filed, then the Debtor is authorized to pay 80 percent of the fees and 100 percent of the expenses not subject to an objection. RELIEF REQUESTED Curtis submits this Application for allowance of reasonable compensation for the actual, reasonable, and necessary professional services that it has rendered as EB-5 Counsel for the Debtor in this case. During the Compensation Period, Curtis incurred fees in the amount of $12,067.50. For the same period, Curtis incurred actual, reasonable, and necessary expenses totaling $0.00. As of the date of this Application, Curtis has received no payments with respect to these amounts. Set forth on the foregoing “Compensation by Category” is a summary, by subject matter category, of the time expended by Curtis timekeepers billing time to the Debtor’s case during the Compensation Period.

8

Exhibit A attached hereto contains logs, which show the time recorded by professionals, paraprofessionals, and other support staff, as well as descriptions of the services provided. Curtis does not charge for outgoing domestic facsimiles or incoming facsimiles. In accordance with Local Rule 2016-2, Curtis has reduced its request for compensation for non-working travel, if any, to 50% of its normal rate. Curtis has endeavored to represent the Debtor in the most expeditious and economical manner possible. Tasks have been assigned to attorneys, paralegals, and other support staff at Curtis so that work has been performed by those most familiar with the particular matter or task and, where attorney or paralegal involvement was required, by the lowest hourly rate professional appropriate for a particular matter. Moreover, Curtis has endeavored to coordinate with the other professionals involved in this case so as to minimize any duplication of effort and to minimize attorneys’ fees and expenses to the Debtor. Curtis believes it has been successful in this regard. No agreement or understanding exists between Curtis and any other person for the sharing of compensation received or to be received for services rendered in or in connection with this case. The undersigned has reviewed the requirements of Local Rule 2016-2 and certifies to the best of his information, knowledge, and belief that this Application complies with that Rule.

9

INFORMATION RELATED TO THE REVISED U.S. TRUSTEE GUIDELINES Curtis provides the following information pursuant to Appendix B Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. § 330 by Attorneys in Larger Chapter 11 Case (the “Revised U.S. Trustee Guidelines”). Curtis’ hourly rates for bankruptcy and EB-5 services are comparable to the hourly rates charged in complex chapter 11 cases by comparably skilled bankruptcy attorneys. In addition, Curtis’ hourly rates for bankruptcy services are comparable to the rates charged by Curtis, and by comparably skilled practitioners in other firms, for complex corporate and litigation matters, whether in court or otherwise, regardless of whether a fee application is required. The blended hourly rate for all Curtis timekeepers who worked on this case is approximately the same as the firm’s blended rate for all timekeepers over a Comparable Period (defined below). In particular, the blended hourly rate for all Curtis timekeepers (including both professionals and paraprofessionals) who billed to matters excluding chapter 11 representations (collectively, the “Non-Chapter 11 Matters”) during the 12-month period beginning July 31, 2019 and ending on July 31, 2020 (the “Comparable Period”) was, in the aggregate, approximately $563.91. By comparison, the blended hourly rate for all Curtis timekeepers (including both professionals and paraprofessionals) who worked on this case during the Compensation period was, in the aggregate, $718.30. The following table shows blended hourly rates by category of professional (rounded to the nearest dollar):

10

Table 1 on page 11. Back to List of Tables
Position at Curtis Blended Hourly Rate for
Compensation Period
Blended Hourly Rate Non-
Chapter 11 Matters
Partner $879.43 $803.84
Counsel $730.00 $536.40
Associate $400.00 $441.87
Paralegal $245.00 $224.11
In addition, Curtis provides the following responses to the inquiries stated in section C.5 of the Revised U.S. Trustee Guidelines: (a) Did you agree to any variations from, or alternatives to, your standard or customary billing rates, fees or terms for services pertaining to this engagement that were provided during the application period? If so, please explain. No. (b) If the fees sought in this fee application as compared to the fees budgeted for the time period covered by this fee application are higher by 10% or more, did you discuss the reasons for the variation with the client? Not applicable. (c) Have any of the professionals included in this fee application varied their hourly rate based on the geographic location of the bankruptcy case? No. (d) Does the fee application include time or fees related to reviewing or revising time records or preparing, reviewing, or revising invoices? (This is limited to work involved in preparing and editing billing records that would not be compensable outside of bankruptcy and does not include reasonable fees for preparing a fee application.). If so, please quantify by hours and fees. No. (e) Does this fee application include time or fees for reviewing time records to redact any privileged or other confidential information? If so, please quantify by hours and fees. No. (f) If the fee application includes any rate increases since retention: (i) Did your client review and approve those rate increases in advance? and (ii) Did your client agree when retaining the law firm to accept all future rate increases? If not, did you inform your client that they need not agree to modified rates or terms in order to have you continue the representation, consistent with ABA Formal Ethics Opinion 11–458? Not Applicable. The fee application does not include any rate increases since retention.

11

WHEREFORE, Curtis respectfully requests that this Court: (a) allow Curtis’ interim compensation in the amount of $12,067.50 for actual, reasonable, and necessary professional services rendered on behalf of the Debtor during the Compensation Period; and (b) authorize and direct the Debtor to pay to Curtis the amount of $9,654.00, which is equal to 80% ($9,654.00) of Curtis’ allowed interim compensation; and (c) grant such other and further relief as is just and proper. Dated: April 23, 2021 CURTIS, MALLET-PREVOST, Wilmington, Delaware COLT & MOSLE LLP /s/ Jason Wright Jason Wright Robert Honeywell Peter J. Buenger 101 Park Ave, New York, NY 10178 Tel: (212) 696-6000 jwright@curtis.com rhoneywell@curtis.com pbuenger@curtis.com EB-5 Counsel for Debtor and Debtor in Possession

12