Opinion
Case No. 04-10463 Jointly Administered.
January 4, 2006
WHEREAS, on November 30, 2005, Skadden, Arps, Slate, Meagher Flom L.L.P. ("Skadden"), in its capacity as lead bankruptcy counsel for the above-captioned debtors and debtors-in-possession, filed a Fourth Interim Application for Allowance of Compensation for Services Rendered and for Reimbursement of Expenses Incurred (doc. # 2054) ("Skadden's Fourth Application") from March 1, 2005 through June 30, 2005 (the "Application Period"); and
WHEREAS no objection was filed and the United States Trustee has consented to Skadden's Fourth Application (doc. # 2075); and
WHEREAS Skadden's Fourth Application seeks Court approval of compensation in the amount of $755,192.50 for professional services rendered, and $23,776.36 for the reimbursement of expenses; and
The services for which compensation is sought are limited to attorney time; Skadden seeks no compensation for paraprofessionals in this application. Thus, in the interest of clarity, the Court refers to the fees requested as "attorneys' fees."
WHEREAS Skadden noticed Skadden's Fourth Application under the default procedure, setting an objection deadline of December 26, 2005 and a hearing date of January 3, 2006; and the Court entered an order taking Skadden's Fourth Application under advisement and cancelling the hearing (doc. # 2083);
After consideration of Skadden's Fourth Application and the record in this case
THE COURT FINDS that certain of the attorneys' fees earned during the Application Period are not compensable, and in particular, finds that the time entries in Skadden's Fourth Application relating to reviewing and revising a case calendar lack sufficient information for the Court to determine whether the fees sought for this work are properly compensable under 11 U.S.C. § 330(a). Skadden fails to provide sufficient detail or description of these entries for the Court to determine whether these services are reasonable, necessary, or of benefit to the estate. Accordingly, the Court denies, without prejudice, the $952.50 in attorneys' fees requested for this purpose. The Court will reconsider this matter if Skadden provides additional information about its review and revision of the case calendar in Skadden's final application for fees in this case.
THE COURT FURTHER FINDS that the remaining attorneys' fees earned during the Application Period to be properly compensable pursuant to 11 U.S.C. § 330(a), and accordingly, approves attorney's fees to the extent of $774,240.00.
THE COURT FURTHER FINDS that the expenses in the amount of $23,776.36 for which Skadden seeks reimbursement during the Application Period are reasonable and appropriate and thus, they are approved and allowed in full.
Skadden has voluntarily reduced the amount of reimbursement it seeks by $196.81 for certain telephone charges. However, it is unclear whether Skadden has already received reimbursement for these expenses pursuant to the Administrative Order (doc. # 292). The Debtors shall adjust any amounts paid under this Order accordingly.
THEREFORE, IT IS HEREBY ORDERED that
1. Skadden's Fourth Application is granted in part and denied in part.
2. The following fees and expenses requested in Skadden's Fourth Application are approved and allowed:
a. $774,240.00 for professional services rendered; and
b. $23,776.36 for reimbursement of expenses.
3. The Debtors are hereby authorized and directed to pay to Skadden, Arps, Slate, Meagher Flom L.L.P. (to the extent not previously paid) the sum of:
a. $774,240.00, representing attorneys' fees earned by Skadden, Arps, Slate, Meagher Flom LLP during the Application Period; and
b. $23,776.36, representing reimbursement of the approved expenses incurred by Skadden, Arps, Slate, Meagher Flom LLP during the Application Period.SO ORDERED.