Vyaire - Fifth Monthly Fee Application (November 1-14 2024)
- Date
- 2025-01-16
Summary
The fifth monthly fee application of McDermott Will & Emery LLP, counsel to the Official Committee of Unsecured Creditors, filed December 26, 2024 as Doc 888 in In re Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), the Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. For the period November 1, 2024 through November 14, 2024 the firm seeks $90,331.54, equal to 80% of $112,914.43 in fees, and no expense reimbursement. Fees are shown as $132,840.50 for 85.3 hours less a 15% client accommodation of $19,926.08, giving a blended rate of $1,323.73. Project categories include plan and disclosure statement work at $94,627.50, creditor communications at $13,852.50, fee applications at $9,650.00 and court hearings at $8,306.00. It lists four prior monthly applications totalling $2,085,691.76 in requested fees.
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Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 1 of 14
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: 1/16/25 at 4:00 p.m. (ET)
) Hrg. Date: Only if an objection is filed
SUMMARY OF FIFTH MONTHLY 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 NOVEMBER 1, 2024 THROUGH NOVEMBER 14, 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 November 1, 2024 through November 14,
reimbursement are sought: 2024
Amount of compensation sought as actual,
reasonable, and necessary: $90,331.54 (80% of $112,914.43)
Amount of reimbursement sought as actual,
reasonable, and necessary: $0.00
This is a: Monthly Fee 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.
Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 2 of 14
Prior Monthly Applications:
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 10/25/24 8/1/24- $536,880.40 $1,664.69 $429,504.32 $1,664.69 $107,376.08
Monthly D.I. 679 8/31/24
D.I. 592
10/1/24
Third 11/22/24 9/1/24- $480,715.38 $2,222.21 $384,572.30 $2,222.21 $96,143.08
Monthly D.I. 794 9/30/24
D.I. 696
10/31/24
Fourth 12/13/24 10/1/24- $329,105.98 $986.58 $263,284.78 $986.58 $65,821.20
Monthly D.I. 840 10/31/24
D.I. 759
11/21/24
Total $2,085,691.76 $8,168.49 $1,668,553.41 $8,168.49 $417,138.35
ii
Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 3 of 14
OFFICIAL COMMITTEE OF UNSECURED
CREDITORS OF VYAIRE MEDICAL, INC., ET AL.
SUMMARY OF BILLING BY PROFESSIONAL
NOVEMBER 1, 2024 THROUGH NOVEMBER 14, 2024
Position with
Name of Date of Total
the Applicant Hourly Total
Professional Bar Billed
and Practice Billing Rate2 Compensation
Person Admission Hours
Area
Partner;
Kristin K. Going 2002 Corporate $1,750 39.3 $68,775.00
Advisory
Partner;
David R. Hurst 1998 Corporate $1,750 8.5 $14,875.00
Advisory
Partner;
Maris J. Kandestin 2004 Corporate $1,650 22.5 $37,125.00
Advisory
Partner;
Kelly D. Newsome 2015 White Collar $1,525 0.5 $762.50
& Securities
Associate;
Carole Wurzelbacher 2015 Corporate $1,245 4.8 $5,976.00
Advisory
Associate;
Kristin E. Schwam 2020 White Collar $1,200 1.2 $1,440.00
& Securities
Technology
Edward Y. Kwon N/A Project $570 1.1 $627.00
Manager
Paralegal;
Nolley M. Rainey N/A Corporate $500 5.4 $2,700.00
Advisory
Litigation
Andy Garcia N/A Technology $280 1.0 $280.00
Data Analyst
Litigation
Daniel Valentino N/A Technology $280 1.0 $280.00
Data Analyst
Total 85.3 $132,840.50
2
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 888 Filed 12/26/24 Page 4 of 14
Position with
Name of Date of Total
the Applicant Hourly Total
Professional Bar Billed
and Practice Billing Rate2 Compensation
Person Admission Hours
Area
Less 15% Client Accommodation3 $19,926.08
ADJUSTED TOTAL $112,914.43
Blended Rate: $1,323.734
3
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.
4
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 888 Filed 12/26/24 Page 5 of 14
OFFICIAL COMMITTEE OF UNSECURED
CREDITORS OF VYAIRE MEDICAL, INC., ET AL.
SUMMARY OF FEES BY PROJECT CATEGORY
NOVEMBER 1, 2024 THROUGH NOVEMBER 14, 2024
Project Category Total Hours Total Fees
Case Administration 3.9 $2,325.00
Asset Disposition 0.4 $690.00
Meetings and Communications with Creditors 8.7 $13,852.50
Court Hearings 5.3 $8,306.00
Fee and Employment Applications 6.8 $9,650.00
Contested and Litigation-Related Matters 4.8 $3,389.50
Plan/Disclosure Statement 55.4 $94,627.50
Total 85.3 $132,840.50
Less 15% Client Accommodation5 $19,926.08
ADJUSTED TOTAL $112,914.43
5
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 888 Filed 12/26/24 Page 6 of 14
OFFICIAL COMMITTEE OF UNSECURED
CREDITORS OF VYAIRE MEDICAL, INC., ET AL.
SUMMARY OF EXPENSES
NOVEMBER 1, 2024 THROUGH NOVEMBER 14, 2024
Service Provider
Expense Category Total Expenses
(if applicable)
N/A $0.00
TOTAL $0.00
vi
Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 7 of 14
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: 1/16/25 at 4:00 p.m. (ET)
) Hrg. Date: Only if an objection is filed
FIFTH MONTHLY 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
NOVEMBER 1, 2024 THROUGH NOVEMBER 14, 2024
McDermott Will & Emery LLP (the “Applicant” or “McDermott”), counsel to the
Official Committee of Unsecured Creditors (the “Committee”) of Vyaire Medical, Inc., et al., the
debtors and debtors in possession (collectively, the “Debtors”) in the above-captioned chapter 11
cases (the “Chapter 11 Cases”), hereby applies (the “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”), and 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”), for allowance of compensation for services
rendered and expenses incurred for the period from November 1, 2024 through November 14,
2024 (the “Application Period”), and respectfully represents as follows:
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 888 Filed 12/26/24 Page 8 of 14
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.
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.
2
Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 9 of 14
B. The Committee’s Retention of McDermott
6. On July 9, 2024, the Committee applied [Docket No. 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 Order (I) Establishing Procedures for
Interim Compensation and Reimbursement of Expenses for Retained Professionals and
(II) Granting Related Relief [Docket No. 218] (the “Interim Compensation Order”), 2 which sets
forth the procedures for interim compensation and reimbursement of expenses in the Chapter 11
Cases. Specifically, the Interim Compensation Order provides that a retained professional may
file and serve a Monthly Fee Statement on or after the twenty-first (21st) day of each month
following the month for which compensation is sought. Provided that there are no objections to
the Monthly Fee Statement filed within twenty-one (21) days after the service of a Monthly Fee
Statement, the professional may file a certificate of no objection with the Court, after which the
Debtors are authorized to pay such professional eighty percent (80%) of the fees and one-
hundred percent (100%) of the expenses requested in such Monthly Fee Statement.
2
Capitalized terms used but not defined herein shall have the meanings ascribed to such items in the Interim
Compensation Order.
3
Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 10 of 14
RELIEF REQUESTED
8. By this Application, McDermott requests the allowance of $90,331.54 , which is
equal to eighty percent (80%) of the $112,914.43 in fees for professional services rendered by
McDermott during the Application Period.3
DESCRIPTION OF SERVICES RENDERED
9. During the Application Period, McDermott professionals, including attorneys and
paraprofessionals (collectively, the “McDermott Professionals”), devoted 85.3 hours to, among
other things, plan and disclosure statement matters, communications with the Committee and
other creditors, preparation of professional fee applications, and Court hearings. McDermott
Professionals’ most significant work in these matter categories is summarized below, and all
work performed by McDermott Professionals is described in detail in Exhibit A hereto, which
provides a detailed itemization, by project category, of all services performed by McDermott
Professionals with respect to the Chapter 11 Cases during the Application Period. This detailed
itemization complies with Local Rule 2016-2(d) in that each time entry contains a separate time
allotment, a description of the type of activity, and the subject matter of the activity, all time is
billed in increments of one-tenth of an hour, time entries are presented chronologically in
categories, and all meetings or hearings are individually identified.
A. Plan/Disclosure Statement
Amount Sought: $94,627.50
10. During the Application Period, McDermott Professionals (i) coordinated with the
Committee’s other professionals and the Debtors’ advisors regarding a settlement of the issues
3
These figures reflect a 15% voluntary fee reduction provided by McDermott to the Committee as a client
accommodation.
4
Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 11 of 14
relating to confirmation of the Debtors’ chapter 11 plan [Docket No. 719]; and (ii) reviewed and
revised the settlement proposal, plan, and confirmation order.
11. McDermott Professionals devoted a total of 55.4 hours to plan and disclosure
statement matters during the Application Period, for which compensation in the amount of
$94,627.50 is sought.
B. Meetings and Communications with Creditors
Amount Sought: $13,852.50
12. During the Application Period, McDermott Professionals prepared for and
conducted regular Committee meetings and communicated with the Committee members and
their counsel both as a group and on an individual basis. Among other things, McDermott
Professionals provided recommendations to the Committee regarding various requests of the
Debtors and other parties in interest, counseled the Committee in connection with the Debtors’
chapter 11 plan, and delivered email updates regarding case status and various outstanding
matters. McDermott Professionals also coordinated with the Committee’s financial advisor to
prepare for Committee calls by preparing, discussing, and reviewing Committee presentations on
topics such as the Debtors’ operations and finances and case strategy.
13. McDermott Professionals devoted a total of 8.7 hours to communications with the
Committee and other creditors (and related tasks) during the Application Period, for which
compensation in the amount of $13,852.50 is sought.
C. Fee and Employment Applications
Amount Sought: $9,650.00
14. During the Application Period, McDermott Professionals drafted McDermott’s
monthly fee application for October 2024, which ultimately was filed on November 21, 2024
[Docket No. 759]. McDermott Professionals also spent time reviewing and filing
the Committee’s financial advisor’s monthly fee application for September 2024.
5
Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 12 of 14
15. McDermott Professionals devoted a total of 6.8 hours to the preparation of
professional fee applications during the Application Period, for which compensation in the
amount of $9,650.00 is sought.
D. Court Hearings
Amount Sought: $8,306.00
16. During the Application Period, McDermott Professionals devoted time to, among
other things, preparing for and attending the hearing on the confirmation of the Debtors’ chapter
11 plan.
17. McDermott Professionals devoted a total of 5.3 hours to preparation for and
attendance at Court hearings during the Application Period, for which compensation in the
amount of $8,306.00 is sought.
VALUATION OF SERVICES
18. McDermott Professionals have expended a total of 85.3 hours in connection with
this matter during the Application Period. The amount of time spent by each of the McDermott
Professionals providing services to the Committee during the Application Period is set forth in
Exhibit A. The rates reflected in this Application are McDermott’s normal hourly rates of
compensation for work of this character. The reasonable value of the services rendered by
McDermott during the Application Period as counsel for the Committee in the Chapter 11 Cases
is $112,914.43.4
19. In accordance with the factors enumerated in Bankruptcy Code section 330,
McDermott submits that the amount requested is fair and reasonable given (a) the complexity of
the Chapter 11 Cases, (b) the time expended, (c) the nature and extent of the services rendered,
4
This figure reflects a 15% voluntary fee reduction provided by McDermott to the Committee as a client
accommodation.
6
Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 13 of 14
(d) the value of such services, and (e) the costs of comparable services other than in a case under
the Bankruptcy Code.
NO PRIOR REQUEST
20. No prior request for the relief requested in this Application has been made to this
Court or any other court.
CERTIFICATE OF COMPLIANCE AND REQUEST FOR WAIVER
21. The undersigned representative of McDermott certifies that he has reviewed the
requirements of Local Rule 2016-2 and that the Application substantially complies with that
Local Rule. To the extent that the Application does not comply in all respects with the
requirements of Local Rule 2016-2, McDermott believes that such deviations are not material
and respectfully requests that any such requirement be waived.
[Remainder of Page Intentionally Left Blank]
7
Case 24-11217-BLS Doc 888 Filed 12/26/24 Page 14 of 14
WHEREFORE, McDermott respectfully requests that it (a) be allowed compensation in
the amount of $90,331.54 (80% of the $112,914.43) for necessary professional services rendered
to the Committee during the Application Period, and (b) be granted such other and further relief
as the Court deems just and proper.
Dated: Wilmington, Delaware MCDERMOTT WILL & EMERY LLP
December 26, 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
8
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