Vyaire - MWE First Interim Fee Application
- Date
- 2024-11-01
Summary
The first interim fee application of McDermott Will & Emery LLP, counsel to the Official Committee of Unsecured Creditors, in In re Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), in the U.S. Bankruptcy Court for the District of Delaware, filed October 11, 2024 as Doc 619. It covers the period from June 28, 2024 through August 31, 2024 and seeks $1,275,870.40 in compensation and $4,959.70 in expenses, including a holdback of $255,174.08. Summary tables list the two monthly fee applications [Docket Nos. 402, 592], billing by professional, compensation by project category, and expenses. The fees reflect a 15% client accommodation of $225,153.60. The application sets an objection deadline of 11/1/24 and a hearing date of 12/11/24, and is signed by David R. Hurst for the firm.
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Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 1 of 11
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
) Chapter 11
In re: )
) Case No. 24-11217 (BLS)
VYAIRE MEDICAL, INC., et al.,1 )
) (Jointly Administered)
Debtors. )
) Obj. Deadline: 11/1/24 at 4:00 p.m. (ET)
) Hrg. Date: 12/11/24 at 11:00 a.m. (ET)
Related to Docket Nos. 402, 592
)
SUMMARY OF FIRST INTERIM FEE APPLICATION OF
MCDERMOTT WILL & EMERY LLP, COUNSEL TO THE OFFICIAL
COMMITTEE OF UNSECURED CREDITORS, FOR ALLOWANCE OF
COMPENSATION AND REIMBURSEMENT OF EXPENSES FOR THE
PERIOD FROM JUNE 28, 2024 THROUGH AUGUST 31, 2024
Name of Applicant: MCDERMOTT WILL & EMERY LLP
Authorized to provide professional Official Committee of Unsecured
services to: Creditors of Vyaire Medical, Inc., et al.
Date of retention: July 30, 2024, effective June 28, 2024
Period for which compensation
and reimbursement are sought: June 28, 2024 through August 31, 2024
Amount of compensation sought as
actual, reasonable, and necessary: $1,275,870.40
Amount of expense reimbursement
sought as actual, reasonable, and necessary: $4,959.70
Amount of compensation approved
as actual, reasonable, and necessary: $591,192.002
1
The last four digits of Debtor Vyaire Medical, Inc.’s federal tax identification number are 6495. A complete list
of each of the Debtors in these chapter 11 cases and each such Debtor’s federal tax identification number may
be obtained on the website of the Debtors’ claims and noticing agent at https://omniagentsolutions.com/Vyaire.
The location of Debtor Vyaire Medical, Inc.’s principal place of business and the Debtors’ service address in
these chapter 11 cases is 26125 North Riverwoods Boulevard, Mettawa, Illinois, USA 60045.
2
If no objections are received by October 22, 2024 to McDermott Will & Emery LLP’s second monthly fee
application [Docket No. 592], an additional $429,504.32 in fees will be approved.
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 2 of 11
Amount of expense reimbursement
approved as actual, reasonable,
and necessary: $3,295.013
Amount of holdback fees sought:4 $255,174.08
This is an: Interim Fee Application
SUMMARY OF MONTHLY FEE APPLICATIONS FOR INTERIM FEE PERIOD
MONTHLY FEE REQUESTED FEES APPROVED FEES HOLDBACK
APPLICATION AND EXPENSES AND EXPENSES
Application CNO Period Requested Requested Approved Approved Fees
Docket No. Date Covered Fees Expenses Fees Expenses Holdback
Date Filed Filed (80%) (100%) (20%)
Docket
No.
First 9/16/24 6/28/24- $738,990.00 $3,295.01 $591,192.00 $3,295.01 $147,798.00
Monthly D.I. 525 7/31/24
D.I. 402
8/21/24
Second N/A 8/1/24- $536,880.40 $1,664.69 Pending Pending $107,376.08
Monthly 8/31/24
D.I. 592
10/1/24
Total $1,275,870.40 $4,959.70 $591,192.00 $3,295.01 $255,174.08
3
If no objections are received by October 22, 2024 to McDermott Will & Emery LLP’s second monthly fee
application [Docket No. 592], an additional $1,664.69 in expenses will be approved.
4
Applicant seeks allowance of the 20% holdback for its first and second monthly fee applications [Docket Nos.
402, 592].
ii
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 3 of 11
OFFICIAL COMMITTEE OF UNSECURED
CREDITORS OF VYAIRE MEDICAL, INC., ET AL.
SUMMARY OF BILLING BY PROFESSIONAL
JUNE 28, 2024 THROUGH AUGUST 31, 2024
Position with
Name of Date of Total
the Applicant Hourly Total
Professional Bar Billed
and Practice Billing Rate5 Compensation
Person Admission Hours
Area
Partner;
Kristin K. Going 2002 Corporate $1,750 86.9 $152,075.00
Advisory
Partner;
David R. Hurst 1998 Corporate $1,750 140.9 $246,575.00
Advisory
Partner;
James R. Ravitz 1998 $1,700 8.9 $15,130.00
Healthcare
Partner;
Darren Azman 2011 Corporate $1,650 40.6 $66,990.00
Advisory
Partner;
Maris J. Kandestin 2004 Corporate $1,650 179.4 $296,010.00
Advisory
Partner;
William Hadler 2008 Corporate $1,575 16.2 $25,515.00
Advisory
Partner;
Kelly D. Newsome 2015 White Collar $1,525 103.6 $157,990.00
& Securities
Partner;
Riley Orloff 2015 Corporate $1,525 17.4 $26,535.00
Advisory
Counsel;
Deanna D. Boll 1998 Corporate $1,395 7.3 $10,183.50
Advisory
Partner;
Kevin M. Regan 2018 $1,350 21.5 $29,025.00
Trial
Associate;
Nick W. Greiner 2018 Corporate $1,245 7.0 $8,715.00
Advisory
Associate;
Carole Wurzelbacher 2015 Corporate $1,245 122.3 $152,263.50
Advisory
Associate;
Kristin E. Schwam 2020 White Collar $1,200 50.2 $60,240.00
& Securities
5
Except as set forth below, the rate represents the current standard hourly rate of each McDermott attorney and
paralegal who rendered legal services.
iii
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 4 of 11
Position with
Name of Date of Total
the Applicant Hourly Total
Professional Bar Billed
and Practice Billing Rate5 Compensation
Person Admission Hours
Area
Associate;
Marissa L. Hill Daley 2017 $1,155 12.6 $14,553.00
Healthcare
Associate;
Jesse E. Douglas 2020 Corporate $1,155 27.3 $31,531.50
Advisory
Associate;
Benjamin Glass 2023 Corporate $925 24.6 $22,755.00
Advisory
Associate;
Rebecca E. Trickey 2022 Corporate $925 127.1 $117,567.50
Advisory
Law Clerk;
Matthew G. Gibson N/A $805 50.5 $40,652.50
Trial
Paralegal;
Daniel D. Northrop N/A Corporate $745 5.0 $3,725.00
Advisory
Technology
Edward Y. Kwon N/A Project $570 5.7 $3,249.00
Manager
Paralegal;
Jessica M. Hirshon N/A Corporate $565 7.9 $4,463.50
Advisory
Paralegal;
Nolley M. Rainey N/A Corporate $500 27.2 $13,600.00
Advisory
Litigation
Fitalesh G. Belayneh N/A Technology $280 1.5 $420.00
Data Analyst
Litigation
Andy Garcia N/A Technology $280 3.0 $840.00
Data Analyst
Litigation
Daniel Valentino N/A Technology $280 1.5 $420.00
Data Analyst
TOTALS 1,096.1 $1,501,024.00
Less 15% Client Accommodation6 $225,153.60
ADJUSTED TOTAL $1,275,870.40
Blended Rate: $1,164.017
6
As an accommodation to the Committee, McDermott has agreed to discount the amount of its monthly invoices
by an amount equal to 15% of the aggregate fees requested in each such invoice.
7
The blended rate was calculated by dividing the adjusted total fees sought by the aggregate number of hours
worked by McDermott Professionals.
iv
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 5 of 11
OFFICIAL COMMITTEE OF UNSECURED
CREDITORS OF VYAIRE MEDICAL, INC., ET AL.
COMPENSATION BY PROJECT CATEGORY
JUNE 28, 2024 THROUGH AUGUST 31, 2024
Project Category Total Hours Total Fees
Case Administration 92.1 $118,945.50
Asset Disposition 258.8 $363,808.50
Meetings and Communications with Creditors 103.6 $144,205.50
Court Hearings 61.1 $88,286.50
Fee and Employment Applications 93.6 $144,542.00
Assumption/Rejection of Leases 0.8 $1,228.50
Contested and Litigation-Related Matters 302.8 $390,587.00
Non-Working Travel 3.2 $5,600.00
Financing/Cash Collateral 177.9 $240,070.50
Claims Administration and Objections 1.7 $2,875.00
Plan/Disclosure Statement 0.5 $875.00
TOTALS 1,096.1 $1,501,024.00
Less 15% Client Accommodation8 $225,153.60
ADJUSTED TOTAL $1,275,870.40
8
As an accommodation to the Committee, McDermott has agreed to discount the amount of its monthly invoices
by an amount equal to 15% of the aggregate fees requested in each such invoice.
v
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 6 of 11
OFFICIAL COMMITTEE OF UNSECURED
CREDITORS OF VYAIRE MEDICAL, INC., ET AL.
EXPENSE SUMMARY
JUNE 28, 2024 THROUGH AUGUST 31, 2024
Expense Category Service Provider Total Expenses
(if applicable)
Outside Service Reliable $4,205.66
Court Filing Fees $100.00
Transportation Various $654.04
TOTAL $4,959.70
vi
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 7 of 11
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
) Chapter 11
In re: )
) Case No. 24-11217 (BLS)
VYAIRE MEDICAL, INC., et al.,1 )
) (Jointly Administered)
Debtors. )
) Obj. Deadline: 11/1/24 at 4:00 p.m. (ET)
) Hrg. Date: 12/11/24 at 11:00 a.m. (ET)
Related to Docket Nos. 402, 592
)
FIRST INTERIM FEE APPLICATION OF MCDERMOTT WILL
& EMERY LLP, COUNSEL TO THE OFFICIAL COMMITTEE OF
UNSECURED CREDITORS, FOR ALLOWANCE OF COMPENSATION
AND REIMBURSEMENT OF EXPENSES FOR THE PERIOD
FROM JUNE 28, 2024 THROUGH AUGUST 31, 2024
McDermott Will & Emery LLP (the “Applicant” or “McDermott”), counsel to the
Official Committee of Unsecured Creditors (the “Committee”) of Vyaire Medical, Inc. and its
affiliated debtors and debtors in possession (collectively, the “Debtors”) in the above-captioned
chapter 11 cases (the “Chapter 11 Cases”), hereby applies (the “Interim Fee Application”),
pursuant to sections 330 and 331 of title 11 of the United States Code, 11 U.S.C. §§ 101-1532
(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”), and the
Order (I) Establishing Procedures for Interim Compensation and Reimbursement of Expenses
for Retained Professionals and (II) Granting Related Relief [Docket No. 218] (the “Interim
1
The last four digits of Debtor Vyaire Medical, Inc.’s federal tax identification number are 6495. A complete list
of each of the Debtors in these chapter 11 cases and each such Debtor’s federal tax identification number may
be obtained on the website of the Debtors’ claims and noticing agent at https://omniagentsolutions.com/Vyaire.
The location of Debtor Vyaire Medical, Inc.’s principal place of business and the Debtors’ service address in
these chapter 11 cases is 26125 North Riverwoods Boulevard, Mettawa, Illinois, USA 60045.
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 8 of 11
Compensation Order”),2 for allowance of compensation for services rendered and reimbursement
of expenses incurred during the interim period from June 28, 2024 through August 31, 2024
(the “Interim Fee Period”), and respectfully represents as follows:
JURISDICTION AND VENUE
1. The Court has jurisdiction to consider the Application pursuant to 28 U.S.C.
§§ 157 and 1334 and the Amended Standing Order of Reference from the United States District
Court for the District of Delaware, dated February 29, 2012. This is a core proceeding under
28 U.S.C. § 157(b). Venue of these cases and the Application in this District is proper under
28 U.S.C. §§ 1408 and 1409.
2. The legal predicates for the relief requested herein are Bankruptcy Code sections
330 and 331, Bankruptcy Rule 2016, and Local Rule 2016-2.
3. McDermott confirms its consent, pursuant to Local Rule 9013-1(f), to the entry of
a final order by the Court in connection with the Application in the event that it is later
determined that the Court, absent consent of the parties, cannot enter final orders or judgments in
connection herewith consistent with Article III of the United States Constitution.
BACKGROUND
A. The Chapter 11 Cases
4. On June 9, 2024 (the “Petition Date”), the Debtors commenced the Chapter 11
Cases by filing petitions for relief under chapter 11 of the Bankruptcy Code with the Court. The
Debtors continue to operate their business and manage their properties as debtors and debtors in
possession under sections 1107(a) and 1108 of the Bankruptcy Code. No trustee or examiner has
been appointed in the Chapter 11 Cases.
2
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Interim
Compensation Order.
2
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 9 of 11
5. On June 26, 2024, the Office of the United States Trustee for the District of
Delaware (the “U.S. Trustee”) appointed the Committee under section 1102(a)(1) of the
Bankruptcy Code. See Docket No. 121.
B. The Committee’s Retention of McDermott
6. On July 9, 2024, the Committee applied [Docket Nos. 215] to the Court for an
order authorizing the Committee to retain and employ McDermott as its counsel, effective as of
June 28, 2024. On July 30, 2024, the Court entered an order [Docket No. 336] authorizing such
retention.
C. The Interim Compensation Order
7. On July 9, 2024, the Court entered the Interim Compensation Order, which
establishes the procedures for interim compensation and reimbursement of expenses in the
Chapter 11 Cases.
RELIEF REQUESTED
8. By the Interim Fee Application, Applicant seeks interim approval and allowance
of compensation for professional services rendered in the amount of $1,275,870.40, and
reimbursement of actual and necessary expenses incurred in the amount of $4,959.70, during the
Interim Fee Period, including any and all holdbacks. Pursuant to the Interim Compensation
Order, and as detailed in the chart below, McDermott filed two monthly fee applications during
the Interim Fee Period that have not been heard by the Court for interim approval [Docket Nos.
402, 592] (together, the “Monthly Applications”):
3
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 10 of 11
MONTHLY FEE REQUESTED FEES APPROVED FEES HOLDBACK
APPLICATION AND EXPENSES AND EXPENSES
Application CNO Period Requested Requested Approved Approved Fees
Docket No. Date Covered Fees Expenses Fees Expenses Holdback
Date Filed Filed (80%) (100%) (20%)
Docket
No.
First 9/16/24 6/28/24- $738,990.00 $3,295.01 $591,192.00 $3,295.01 $147,798.00
Monthly D.I. 525 7/31/24
D.I. 402
8/21/24
Second N/A 8/1/24- $536,880.40 $1,664.69 Pending Pending $107,376.08
Monthly 8/31/24
D.I. 592
10/1/24
Total $1,275,870.40 $4,959.70 $591,192.00 $3,295.01 $255,174.08
9. In support of this request for the interim allowance of all fees and expenses
incurred by Applicant during the Interim Fee Period, McDermott incorporates herein by
reference its Monthly Applications.
NOTICE
10. As required under the Interim Compensation Order, notice of the Interim Fee
Application will be served on the Application Recipients. In addition, notice of the Interim Fee
Application will be served on all parties that have requested notice in the Chapter 11 Cases
pursuant to Bankruptcy Rule 2002.
NO PRIOR REQUEST
11. No prior request for the relief sought in the Interim Fee Application has been
made to this or any other court.
[Remainder of Page Intentionally Left Blank]
4
Case 24-11217-BLS Doc 619 Filed 10/11/24 Page 11 of 11
WHEREFORE, McDermott respectfully requests that the Court enter an Order:
(i) granting the Interim Fee Application and authorizing interim allowance of compensation for
professional services rendered in the amount of $1,275,870.40, and reimbursement for actual and
necessary costs incurred in the amount of $4,959.70, (ii) directing payment by the Debtors of the
foregoing amounts, including the 20% holdback of fees, as provided for in the Interim
Compensation Order, and (iii) granting such other and further relief as the Court deems just and
proper.
Dated: Wilmington, Delaware MCDERMOTT WILL & EMERY LLP
October 11, 2024
/s/ David R. Hurst
David R. Hurst (I.D. No. 3743)
Maris J. Kandestin (I.D. No. 5294)
The Brandywine Building
1000 N. West Street, Suite 1400
Wilmington, Delaware 19801
(302) 485-3900
dhurst@mwe.com
mkandestin@mwe.com
- and -
Darren Azman
Kristin K. Going
One Vanderbilt Avenue
New York, New York 10017
(212) 547-5400
dazman@mwe.com
kgoing@mwe.com
Counsel for the Official Committee
of Unsecured Creditors
5
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