Pandemic Darlings The pandemic economy, in original documents
Home Source documents In re Vyaire Medical — Kirkland & Ellis Fifth Monthly Fee Application (October 2024)

In re Vyaire Medical — Kirkland & Ellis Fifth Monthly Fee Application (October 2024)

Date
2024-12-27

Summary

The fifth monthly fee application of Kirkland & Ellis LLP and Kirkland & Ellis International LLP, attorneys for the debtors and debtors in possession in In re Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), filed December 6, 2024 as Doc 823 in the U.S. Bankruptcy Court for the District of Delaware. It seeks compensation of $811,020.80 (80 percent of $1,013,776.00) and expense reimbursement of $3,957.43 for the period October 1, 2024 through October 31, 2024, a total of $814,978.23. The application states the firm voluntarily reduced its fees by $19,354.75 and its expenses by $425.20 for that period. It includes schedules of hours by professional, compensation by project category, an expense summary and a table of prior applications, reporting 704.90 hours. The 13-page filing carries a verification by a partner of the firm and lists an objection deadline of December 27, 2024.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

                 Case 24-11217-BLS              Doc 823        Filed 12/06/24        Page 1 of 13




                         IN THE UNITED STATES BANKRUPTCY COURT
                              FOR THE DISTRICT OF DELAWARE

                                                           )
    In re:                                                 )   Chapter 11
                                                           )
    VYAIRE MEDICAL, INC., et al.,1                         )   Case No. 24-11217 (BLS)
                                                           )
                             Debtors.                      )   (Jointly Administered)
                                                           )
                                                           )   Obj. Deadline: December 27, 2024, at 4:00 p.m. (ET)

                        SUMMARY OF FIFTH MONTHLY
               FEE APPLICATION OF KIRKLAND & ELLIS LLP AND
           KIRKLAND & ELLIS INTERNATIONAL LLP, ATTORNEYS FOR
          THE DEBTORS AND DEBTORS IN POSSESSION, FOR THE PERIOD
        FROM OCTOBER 1, 2024, THROUGH AND INCLUDING OCTOBER 31, 2024

    Name of Applicant:                                         Kirkland & Ellis LLP

    Authorized to Provide Professional Services to:            Debtors and Debtors in Possession

    Date of Retention:                                         August 5, 2024, effective as of June 9, 2024

    Period for which compensation                              October 1, 2024, through October 31, 2024
    and reimbursement is sought:

    Amount of Compensation sought as actual,                   $811,020.80 (80 percent of $1,013,776.00)2
    reasonable and necessary:

    Amount of Expense reimbursement sought as
    Actual, reasonable, and necessary:                         $3,957.433


    This is a(n) X monthly ___ interim ___ final application


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
      K&E voluntarily reduced its fees by $19,354.75 in the Fee Period (as defined herein). Consequently, K&E does
      not seek payment of these fees in this Monthly Fee Statement (as defined herein).

3
      K&E voluntarily reduced its expenses by $425.20 in the Fee Period (as defined herein). Consequently, K&E does
      not seek payment of these expenses in this Monthly Fee Statement (as defined herein).
                  Case 24-11217-BLS             Doc 823       Filed 12/06/24      Page 2 of 13




                                                Prior Applications

                                                       Requested                               Approved

  Date Filed;
                     Period Covered                Fees             Expenses           Fees          Expenses
  Docket No.
 August 30, 2024 June 9, 2024 – June      $1,875,844.00 (80%
                                                                   $25,041.09      $1,875,844.00     $25,041.09
[Docket No. 489]          30, 2024         of $2,344,805.00)
 October 3, 2024    July 1, 2024 – July   $2,796,646.00 (80%
                                                                   $33,951.83      $2,796,646.00     $33,951.83
[Docket No. 604]          31, 2024         of $3,495,807.50)
 October 9, 2024     August 1, 2024 –     $2,794,772.80 (80%
                                                                    $6,007.31      $2,782,207.53     $6,007.31
[Docket No. 615]     August 31, 2024       of $3,493,466.00)
  November 13,                            $1,854,922.79 (20%
                       June 9, 2024 –
      2024                                holdback less write-         $0               ---               N/A
                     August 31, 2024
[Docket No. 742]                                  off)
  November 20,      September 1, 2024
                                          $1,082,659.60 (80%
      2024            – September 30,                               $7,859.33           ---               ---
                                            $1,353,324.50)
[Docket No. 758]           2024
                 Total                       $10,404,845.20        $72,859.56      $7,454,697.53     $65,000.23

                               Summary of Hours by Professional Billed From
                                 October 1, 2024, through October 31, 2024

                                                                     Hourly
                                                                                    Hours Billed     Fees Billed
                                                     Date of       Billing Rate
Attorney Name       Position       Department                                         In this          In this
                                                    Admission         In this
                                                                                    Application      Application
                                                                   Application

 Chris Ceresa      Associate       Restructuring      2020          $1,395.00          17.10        $23,854.50


Tiffani Chanroo    Associate       Restructuring      2021          $1,345.00          23.70        $31,876.50

                                   Corporate -
  Luke Finn        Associate      M&A/Private         2021          $1,345.00         106.10        $142,704.50
                                      Equity
                                  Technology &
   Justin M.
                   Associate            IP            2022          $1,095.00          8.00          $8,760.00
   Garfinkle
                                   Transactions

Emanuel Goetz      Associate         Taxation         2024           $750.00           16.20        $12,150.00

   Palmer
                   Associate         Taxation         2023           $995.00           37.70        $37,511.50
  Gunderson

   Sabrina
                   Associate       Restructuring      2023           $975.00           35.50        $34,612.50
  Lieberman



                                                          2
                 Case 24-11217-BLS        Doc 823     Filed 12/06/24      Page 3 of 13



                                                             Hourly
                                                                            Hours Billed   Fees Billed
                                              Date of      Billing Rate
Attorney Name     Position    Department                                      In this        In this
                                             Admission        In this
                                                                            Application    Application
                                                           Application

   Ruan J.                    Corporate -
                 Associate                     2022         $1,095.00          5.20         $5,694.00
   Meintjes                   Healthcare
                              Corporate -
Trent Nachbar    Associate   M&A/Private       2022         $1,265.00          0.20         $253.00
                                Equity
                              Corporate -
Dan O'Connor     Associate   M&A/Private       2021         $1,345.00          23.70       $31,876.50
                                Equity

 Carolin Paus    Associate   Restructuring     2023          $750.00           36.70       $27,525.00


Joshua Raphael   Associate   Restructuring     2023         $1,095.00          0.90         $985.50


Adrian Salmen    Associate   Restructuring     2021         $1,265.00          0.90         $1,138.50


Donatus Wang     Associate   Restructuring     2022          $960.00           20.20       $19,392.00

                              Corporate -
Ali Mohammad
                 Associate   M&A/Private       2022         $1,095.00          7.60         $8,322.00
    Zarrabi
                                 Equity
                              Corporate -
Hendrik Braun     Partner    M&A/Private       2010         $1,145.00          3.00         $3,435.00
                                 Equity
                             Technology &
  Bernadette
                  Partner          IP          2013         $1,575.00          7.90        $12,442.50
   Coppola
                              Transactions
   Hannah
                  Partner    Restructuring     2015         $1,595.00          15.30       $24,403.50
  Crawford

Anthony M. Del                Corporate -
                  Partner                      2014         $1,595.00          2.10         $3,349.50
     Rio                      Healthcare

Michael Ehret     Partner      Taxation        2001         $1,895.00          56.20       $106,499.00

   Susan D.
                  Partner    Restructuring     1988         $1,600.00          0.50         $800.00
    Golden

                              Corporate -
 Kate Hardey      Partner                      2003         $1,995.00          9.90        $19,750.50
                              Healthcare




                                                3
                  Case 24-11217-BLS        Doc 823     Filed 12/06/24      Page 4 of 13



                                                              Hourly
                                                                             Hours Billed    Fees Billed
                                               Date of      Billing Rate
Attorney Name      Position    Department                                      In this         In this
                                              Admission        In this
                                                                             Application     Application
                                                            Application
                               Corporate -
 Maximilian
                   Partner    M&A/Private       2017         $1,070.00          1.00         $1,070.00
   Liegl
                                 Equity
                               Corporate -
 Sean McClay       Partner                      2018         $1,575.00          3.20         $5,040.00
                              Debt Finance

  William T.                   Litigation -
                   Partner                      2009         $1,695.00          1.70         $2,881.50
   Pruitt                       General

Yusuf Salloum      Partner    Restructuring     2018         $1,595.00          61.30        $97,773.50

                               Corporate -
    Anna
                   Partner       Capital        2002         $1,315.00          1.10         $1,446.50
  Schwander
                                 Markets
                              Technology &
   Scottie
                   Partner          IP          2018         $1,575.00          17.50        $27,562.50
 Shermetaro
                               Transactions
Josh Sussberg,
                   Partner    Restructuring     2004         $2,305.00          0.20          $461.00
     P.C.
                               Corporate -
  Steve Toth       Partner    M&A/Private       2005         $1,820.00         125.50       $228,410.00
                                 Equity
   Nicholas
                   Partner      Taxation        2017         $1,665.00          16.20        $26,973.00
   Warther

   Cristina
                   Partner    Restructuring     2005         $1,665.00          18.60        $30,969.00
   Weidner

 Spencer A.
                   Partner    Restructuring     2013         $1,685.00          7.80         $13,143.00
 Winters, P.C.

   Sara B.
                   Partner      Taxation        2003         $2,445.00          5.90         $14,425.50
Zablotney, P.C.

 Ann-Kathrin
                   Partner    Restructuring     2018         $1,070.00          3.20         $3,424.00
   Ziegler

                               Totals                                          697.80       $1,010,915.50




                                                 4
              Case 24-11217-BLS      Doc 823      Filed 12/06/24     Page 5 of 13




            Summary of Hours by Paraprofessionals Billed in Interim Fee Period

                                                        Hourly
                                                                      Hours Billed   Fees Billed
                                                      Billing Rate
Professional Name      Position      Department                         In this        In this
                                                         In this
                                                                      Application    Application
                                                      Application
                        Junior        Litigation -
 Stephanie Choi                                         $355.00           1.20        $426.00
                       Paralegal       General
                        Junior
  Tanzila Zomo                       Restructuring      $355.00           3.90       $1,384.50
                       Paralegal
  Amy Donahue          Paralegal     Restructuring      $525.00           2.00       $1,050.00

                            Totals                                        7.10       $2,860.50




                                              5
              Case 24-11217-BLS             Doc 823   Filed 12/06/24     Page 6 of 13




                               Compensation By Project Category
                            October 1, 2024, through October 31, 2024




  Matter
             Project Category Description                        Total Hours             Total Fees
  Number

        5    Corporate & Governance Matters                            37.80             $44,407.00
        6    Disclosure Statement/Plan/Confirmation                    47.90             $63,678.50
        7    DIP Financing and Cash Collateral                         7.60              $10,791.00
        8    Cash Management                                           1.20              $1,170.00
        10   Asset Sales/Section 363 Issues                        411.30               $609,876.00
        11   Executory Contracts & Unexpired Leases                    0.50               $635.50
        12   Business Operations                                       19.10             $30,992.50
        18   Insurance and Surety Matters                              20.00             $36,987.50
        20   Tax Matters                                           104.60               $150,356.00
        21   Case Administration                                       9.90              $12,220.50
        22   Retention – K&E                                           45.00             $52,661.50
Total                                                              704.90               $1,013,776.00




                                                  6
                Case 24-11217-BLS   Doc 823     Filed 12/06/24   Page 7 of 13




                                    Expense Summary

                                          Unit Cost
                  Expense                                            Amount
                                       (if applicable)
Standard Copies or Prints                                              $16.30
Color Copies or Prints                                                 $50.60
Local Transportation                                                  $254.13
Travel Expense                                                        $360.80
Airfare                                                              $1,556.62
Transportation to/from airport                                        $324.35
Travel Meals                                                          $178.00
Outside Retrieval Service                                               $1.83
Computer Database Research                                             $23.76
Westlaw Research                                                      $729.90
LexisNexis Research                                                   $131.05
Overtime Transportation                                               $234.22
Overtime Meals - Attorney                                              $95.87
Total                                                                $3,957.43




                                            7
                   Case 24-11217-BLS            Doc 823        Filed 12/06/24        Page 8 of 13




                         IN THE UNITED STATES BANKRUPTCY COURT
                              FOR THE DISTRICT OF DELAWARE

                                                           )
    In re:                                                 )   Chapter 11
                                                           )
    VYAIRE MEDICAL, INC., et al.,1                         )   Case No. 24-11217 (BLS)
                                                           )
                             Debtors.                      )   (Jointly Administered)
                                                           )
                                                           )   Obj. Deadline: December 27, 2024, at 4:00 p.m. (ET)

           FIFTH MONTHLY FEE APPLICATION OF KIRKLAND & ELLIS LLP
           AND KIRKLAND & ELLIS INTERNATIONAL LLP, ATTORNEYS FOR
          THE DEBTORS AND DEBTORS IN POSSESSION, FOR THE PERIOD
        FROM OCTOBER 1, 2024, THROUGH AND INCLUDING OCTOBER 31, 2024

             Pursuant to sections 327, 330, and 331 of chapter 11 of title 11 of the United States Code,

(the “Bankruptcy Code”), Rule 2016 of the Federal Rules of Bankruptcy Procedure

(the “Bankruptcy Rules”), the Order Authorizing the Retention and Employment of

Kirkland & Ellis LLP and Kirkland & Ellis International LLP as Attorneys for the Debtors and

Debtors in Possession Effective as of June 9, 2024, dated August 5, 2024 [Docket No. 350]

(the “Retention Order”), the Order (I) Establishing Procedures for Interim Compensation and

Reimbursement of Expenses for Retained Professionals and (II) Granting Related Relief, dated

July 9, 2024 [Docket No. 218] (the “Interim Compensation Order”), and the Local Rules for the

United States Bankruptcy Court District of Delaware (the “Bankruptcy Local Rules”), the law firm

of Kirkland & Ellis LLP and Kirkland & Ellis International LLP (together, “K&E”), counsel for

the above-captioned debtors and debtors in possession (collectively, the “Debtors”), hereby files

this monthly fee statement (this “Monthly Fee Statement”) for: (i) compensation in the amount of


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 823        Filed 12/06/24      Page 9 of 13




$811,020.80 (80% of $1,013,776.00) for the reasonable and necessary legal services K&E

rendered to the Debtors from October 1, 2024 through October 31, 2024 (the “Fee Period”); and

(ii) reimbursement for the actual and necessary expenses that K&E incurred, in the amount of

$3,957.43 during the Fee Period.

                 Itemization of Services Rendered and Disbursements Incurred

        1.      In support of this Monthly Fee Statement, attached are the following exhibits:

        •    Exhibit A is a schedule of the number of hours expended and fees incurred (on
             an aggregate basis) by K&E partners, associates, and paraprofessionals during
             the Fee Period with respect to each of the subject matter categories K&E
             established in accordance with its internal billing procedures. As reflected in
             Exhibit A, K&E incurred $1,013,776.00 in fees during the Fee Period.
             Pursuant to this Monthly Fee Statement, K&E seeks reimbursement for 80% of
             such fees ($811,020.80 in the aggregate).

        •    Exhibit B is a schedule providing certain information regarding the K&E
             attorneys and paraprofessionals for whose work on these chapter 11 cases
             compensation is sought in this Monthly Fee Statement. Attorneys and
             paraprofessionals of K&E have expended a total of 704.90 hours in connection
             with these chapter 11 cases during the Fee Period.

        •    Exhibit C is a schedule for the Fee Period, setting forth the total amount of
             reimbursement sought with respect to each category of expenses for which
             K&E is seeking reimbursement in this Monthly Fee Statement. All of these
             disbursements comprise the requested sum for K&E’s out-of-pocket expenses.

        •    Exhibit D consists of K&E’s records of fees and expenses incurred during the
             Fee Period in the rendition of the professional services to the Debtors and their
             estates.2

                                             Representations

        2.      Although every effort has been made to include all fees and expenses incurred in

the Fee Period, some fees and expenses might not be included in this Monthly Fee Statement due

to delays caused by accounting and processing during the Fee Period. K&E reserves the right to


2
    K&E has negotiated a discounted rate for Westlaw computer-assisted legal research. Computer-assisted legal
    research is used whenever the researcher determines that using Westlaw is more cost effective than using
    traditional (non-computer assisted legal research) techniques.


                                                      9
             Case 24-11217-BLS        Doc 823        Filed 12/06/24   Page 10 of 13




make further application to this Court for allowance of such fees and expenses not included herein.

Subsequent fee applications will be filed in accordance with the Bankruptcy Code, the Bankruptcy

Rules, Bankruptcy Local Rules, and the Interim Compensation Order.



                           [Remainder of page intentionally left blank]




                                                10
                   Case 24-11217-BLS           Doc 823   Filed 12/06/24     Page 11 of 13



             WHEREFORE, K&E requests allowance of its fees and expenses incurred during the

      Fee Period in the total amount of $814,978.23 consisting of (a) $811,020.80, which is 80% of the

      fees incurred by the Debtors for reasonable and necessary professional services rendered by K&E;

      and (b) $3,957.43 for actual and necessary costs and expenses, and that such fees and expenses be

      paid as administrative expenses of the Debtors’ estates.

Dated: December 6, 2024
Wilmington, Delaware

 /s/ Patrick J. Reilley
  COLE SCHOTZ P.C.                                       KIRKLAND & ELLIS LLP
  Patrick J. Reilley, Esq. (DE Bar No. 4451)             KIRKLAND & ELLIS INTERNATIONAL LLP
  500 Delaware Avenue, Suite 1410                        Joshua A. Sussberg, P.C. (admitted pro hac vice)
  Wilmington, Delaware 19801                             601 Lexington Ave
  Telephone:       (302) 652-3131                        New York, New York 10022
  Facsimile:       (302) 652-3117                        Telephone:    (212) 446-4800
  Email:           preilley@coleschotz.com               Facsimile:    (212) 446-4900
                                                         Email:        joshua.sussberg@kirkland.com

 - and -                                                 - and -

 Michael D. Sirota, Esq. (admitted pro hac vice)         Spencer A. Winters, P.C. (admitted pro hac vice)
 Warren A. Usatine, Esq (admitted pro hac vice)          Yusuf U. Salloum (admitted pro hac vice)
 Court Plaza North, 25 Main Street                       333 West Wolf Point Plaza
 Hackensack, New Jersey 07601                            Chicago, Illinois 60654
 Telephone:     (201) 489-3000                           Telephone:      (312) 862-2000
 Facsimile:     (201) 489-1536                           Facsimile:      (312) 862-2200
 Email:         msirota@coleschotz.com                   Email:          spencer.winters@kirkland.com
                wusatine@coleschotz.com                                  yusuf.salloum@kirkland.com


 Co-Counsel to the Debtors                               Co-Counsel to the Debtors
 and Debtors in Possession                               and Debtors in Possession
                  Case 24-11217-BLS            Doc 823         Filed 12/06/24       Page 12 of 13



                         IN THE UNITED STATES BANKRUPTCY COURT
                              FOR THE DISTRICT OF DELAWARE

                                                           )
    In re:                                                 )    Chapter 11
                                                           )
    VYAIRE MEDICAL, INC., et al.,1                         )    Case No. 24-11217 (BLS)
                                                           )
                             Debtors.                      )    (Jointly Administered)
                                                           )

                             VERIFICATION OF SPENCER A. WINTERS

             I, Spencer A. Winters, hereby declare the following under penalty of perjury:

             1.     I am the president of Spencer A. Winters, P.C., a partner of the law firm of

Kirkland & Ellis LLP, located at 333 West Wolf Point Plaza, Chicago, Illinois 60654. I am a

member in good standing of the Bar of the State of Illinois, and I have been admitted to practice

in United States District Court for the Northern District of Illinois, and I have been admitted pro

hac vice to practice in the United States Bankruptcy Court for the District of Delaware. There are

no disciplinary proceedings pending against me.

             2.     I have personally performed many of the legal services rendered by

Kirkland & Ellis LLP as general bankruptcy counsel to the Debtors and am familiar with all other

work performed on behalf of the Debtors by the lawyers and other persons in the firm.

             3.     The facts set forth in the foregoing Monthly Fee Statement are true and correct to

the best of my knowledge, information, and belief.

             4.     I have reviewed Rule 2016-2 of the Local Rules of Bankruptcy Practice and

Procedures of the United States Bankruptcy Court for the District of Delaware and believe that the

Monthly Fee Statement for Kirkland & Ellis LLP complies with Rule 2016-2.


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 823     Filed 12/06/24       Page 13 of 13



        5.      Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing

is true and correct.

                                              Respectfully submitted,

 Dated: December 6, 2024                      /s/ Spencer A. Winters
                                             Spencer A. Winters
                                             as President of Spencer A. Winters, P.C.,
                                             as Partner of Kirkland & Ellis LLP; and
                                             as Partner of Kirkland & Ellis International LLP


File and source

File
gov.uscourts.deb.193283.823.0.pdf
Size
481,716 bytes
SHA-256
2d23f017346769bbfa0b2f08ad8526ae424e1d47a47af6653b3d60368c7ecd7f
Our copy
gov.uscourts.deb.193283.823.0.pdf
Original
PACER (login required)
Back to top