Laserfiche WebLink
Case 1:20-bk-12043 Doc 643 Filed 03/03/21 Entered 03/03/21 18:42:10 Desc Main <br />Document Page 2 of 20 <br />Prepetition Secured Parties, (IV) Modifying the Automatic Stay, and (V) Granting Related Relief <br />[Related to Docket Nos. 23 & 61] (Docket No. 238, the "Final DIP Order") in the amount of <br />$75,500 and reserves the right to seek additional fees and expenses pursuant to the terms of the <br />Final DIP Order. <br />Preliminary Statement <br />1. The Final DIP Order provided that Cortland/AD, in its capacity as agent for the DIP <br />Lenders and separately as agent for the Prepetition Lenders would have its fees and expenses paid <br />as administrative expenses of the Debtors' estates without the need for Cortland/AD to expend <br />additional resources (and the time of the Court) in filing fee applications. This included its agency <br />fee of $22,500 (the "DIP Fee") for administering the DIP Facility and the fees and expenses of its <br />counsel. Due to an error on the flow of funds, the Debtors failed to pay the DIP Fee when the DIP <br />Facility was funded. Rather than hold up funding of the DIP Facility, Cortland/AD accepted in <br />good faith that the Debtors would work to resolve the issue and agreed that they could pay the DIP <br />Fee later. They never did. <br />2. Further, during the Chapter 11 Cases, Cortland/AD engaged Holland & Knight <br />LLP, regarding certain matters in connection with the chapter 11 cases, including arrangements <br />with the lenders regarding potentially filing proofs of claim and voting on the plan. In December <br />2020, with these chapter 11 cases coming to a close, Cortland/AD submitted its first and only bill <br />for these professional expenses in the amount of $23,928.00, covering the period from July 22, <br />2020 when these chapter 11 cases began to December 14, 2020. Rather than pay these expenses, <br />the Debtors, at the urging of the Committee, refused. <br />3. Initially, the Committee objected to Holland & Knight's fees on the basis that "the <br />full amount of the lenders' fees under the budgets have already been paid. Per our settlement, there <br />would be nothing more payable to the agent," meaning that the budget for the lenders' professional <br />26594115v.2 <br />