UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK HEARING DATE: October 6, 2011. U.s. Trustee objects to second interim applications for compensation and reimbursement of expenses. Debtors seek allowance of $6,968. In fees and $308,715. In expenses for this fee period.
UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK HEARING DATE: October 6, 2011. U.s. Trustee objects to second interim applications for compensation and reimbursement of expenses. Debtors seek allowance of $6,968. In fees and $308,715. In expenses for this fee period.
UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK HEARING DATE: October 6, 2011. U.s. Trustee objects to second interim applications for compensation and reimbursement of expenses. Debtors seek allowance of $6,968. In fees and $308,715. In expenses for this fee period.
HEARING DATE: October 6, 2011 HEARING TIME: 10:00 a.m. -------------------------------x : In re : : INNKEEPERS USA TRUST, et al., : : : Debtors. : : -------------------------------x Case No. 10-13800 (SCC) (Chapter 11) OBJECTION OF THE UNITED STATES TRUSTEE TO SECOND INTERIM APPLICATIONS FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES TO THE HONORABLE SHELLY C. CHAPMAN, BANKRUPTCY JUDGE: Tracy Hope Davis, the United States Trustee for Region 2 (the "United States Trustee"), files this objection to the following interim applications for compensation and reimbursement of expenses submitted in these cases for the period of April 1, 2010 through July 31, 2011: Professional Fees Expenses Kirkland & Ellis, LLP Counsel to Debtors $5,291,425.50 1 $273,652.98 Moelis & Company, LLC Financial Advisor and Investment Banker to Debtors $600,000.00 $17,431.92 Morrison & Foerster, LLP Counsel to Committee $374,983.25 $7,119.57 Jefferies & Company, LLC Financial Advisors to Committee $500,000.00 $3,774.18 Fried Frank Harris Shriver & Jacobson, LLP Counsel to Independent Board $202,489.00 $6,736.79 Totals: $6,968,897.75 $308,715.44 1 The Applicant also seeks the award of $491,289.90 previously held-back. Introduction The professionals seek allowance of $6,968.75 in fees and $308,715.44 in expenses for this fee period. Although four plans of reorganization have been confirmed in these cases, the Debtors primary plan effecting 64 of its hotels has not yet been consummated. Rather, the Debtors are currently involved in litigation seeking, among other things, to require the purchasers of the hotels to close on the transaction. The outcome of these cases is unresolved. Therefore, allowance of the full amount of fees requested on the basis of overall case results would be premature at this point. Accordingly, the full payment of the interim fees to the applicants at this time pursuant to 11 U.S.C. 331 would be inappropriate. For these reasons, the United States Trustee respectfully requests that the Court impose a percentage fee reduction (colloquially known as a hold back), with a reservation of rights to object to the allowance of these interim fees based upon the results of this case. The United States Trustee also asserts specific objections to the amounts of fees and expenses sought. The specific objections are more fully described below. Background General Background 1. On July 19, 2010 (the Petition Date), Innkeepers USA Trust (Innkeepers) and certain of its affiliates (collectively, 2 the Debtors) filed voluntary petitions for relief under the Bankruptcy Code. 2. The Debtors own and operate a portfolio of 72 hotels located in 20 states across the United States. Declaration of Dennis Craven, Chief Financial Officer of Innkeepers USA Trust, in Support of First Day Pleadings (the Craven Declaration) at 6, ECF No. 2. 3. Since the Petition Date, the Debtors have operated their businesses and managed their properties as debtors in possession pursuant to Bankruptcy Code Sections 1107 and 1108. By Order dated July 20, 2010, the Debtors cases are being jointly administered. ECF No. 51. 4. On July 28, 2010, the United States Trustee, pursuant to Section 1102(a)(1) of the Bankruptcy Code, appointed the official committee of unsecured creditors (the Creditors Committee). ECF No. 82. 5. On August 12, 2010, the Court entered an Administrative Order Establishing Procedures for Interim Compensation and Reimbursement of Expenses of Professionals (the Monthly Compensation Order). ECF No.189. According to the Monthly Compensation Order, professionals in these cases may be paid 80% of their fees and 100% of their expenses on a monthly basis. Id. 3 Plan and Disclosure Statement 6. On June 29, 2011, the Court entered an order confirming the Debtors plans of reorganization. ECF No. 1804. Pursuant to the plans, 64 of the Debtors hotels were to be sold to Cerebus Series Four Holdings LLC and Chatham Lodging Trust (collectively, the Purchasers) for $1.12 billion. Id. As of the date hereof, the parties have not closed on that transaction. Rather, on August 29, 2011, the Debtors commenced an adversary proceeding against the Purchasers to, among other things, require specific performance by the Purchasers. General Standards Bankruptcy Code Section 330(a)(1) provides that: After notice to the parties in interest and the United States trustee and a hearing, and subject to section 326, 328, and 329, the court may award to a trustee, an examiner, or a professional person employed under section 327 or 1103 (A) reasonable compensation for actual, necessary services rendered by the trustee, examiner, professional person, or attorney and by any paraprofessional person employed by any such person; and (B) reimbursement for actual, necessary expenses. 11 U.S.C. 330(a)(1)(A) and (B). To determine reasonableness, Section 330(a)(3) of the Bankruptcy Code instructs that: 4 . . . the court shall consider the nature, the extent, and the value of such services, taking into account all relevant factors, including a. the time spent on such services; b. the rates charged for such services; c. whether the services were necessary to the administration of, or beneficial at the time at which the service was rendered toward the completion of, a case under this title; d. whether the services were performed within a reasonable amount of time commensurate with the complexity, importance, and nature of the problem, issue, or task addressed; e. with respect to a professional person, whether the person is board certified or otherwise has demonstrated skill and experience in the bankruptcy field; and f. whether the compensation is reasonable based on the customary compensation charged by comparably skilled practitioners in cases other than cases under this title. 11 U.S.C. 330(a)(3). Each applicant bears the burden of proof for its claim for compensation. Howard & Zukin Capital v. High River Ltd. Pship, No. 05 Civ. 5726 (BSJ), 2007 WL 1217268, at *2 (S.D.N.Y. Apr. 24, 2007); Zeisler & Zeisler, P.C. v. Prudential Ins. Co. (In re JLM, Inc.), 210 B.R. 19, 24 (B.A.P. 2d Cir. 1997); In re Northwest Airlines Corp., 382 B.R. 632, 645 (Bankr. S.D.N.Y. 2008) (citations omitted); In 5 re Keene Corp., 205 B.R. 690, 695 (Bankr. S.D.N.Y. 1997). The failure of an applicant to sustain the burden of proof as to the reasonableness of the compensation may result in the denial of the request for compensation. In re Beverly Mfg. Corp., 841 F.2d 365 (11 th Cir. 1988). Additionally, only documented expenses that are actual and necessary are reimbursable. 11 U.S.C. 330(a)(1)(B). Professionals must furnish enough specificity to establish whether a given expense was both actual and necessary. In re Korea Chosun Daily Times, 337 B.R. 758, 769 (Bankr. E.D.N.Y. 2005) (quoting In re S.T.N. Enters., Inc., 70 B.R. 823, 834 (Bankr. D. Vt. 1987)); see also In re Fibermark, Inc., 349 B.R. 385, 395 (Bankr. D. Vt. 2006) (in order to be compensated from the estate, the professional must demonstrate, not just recite that . . . the expenses sought to be reimbursed are actual and necessary and that no other reasonable, less expensive alternatives were available.). Expenses are actual if they are incurred and not based on a formula or pro rata calculation. Id. at 400. Moreover, they are necessary if they were reasonably needed to accomplish proper representation of the client. Korea Chosun, 337 B.R. at 769 (quoting In re Pacific Express, Inc., 56 B.R. 859, 865 (Bankr. E.D. Cal. 1985)). The Court has an independent burden to review fee applications lest overreaching professionals drain [the 6 estate] of wealth which by right should inure to the benefit of unsecured creditors. Keene Corp., 205 B.R. at 695 (quoting In re Busy Beaver Bldg. Ctrs., Inc., 19 F.3d 833, 844 (3d Cir. 1994)). Further, the Bankruptcy Court has the authority to reduce fees or expenses when they are disproportionate to the benefit to the estate, even if it already has approved the professionals retention under Sections 327 and 328 of the Bankruptcy Code. In re Taxman Clothing Co., 49 F.3d 310, 316 (7 th Cir. 1995); see also, Zolfo, Cooper & Co. v. Sunbeam-Oster Co., Inc., 50 F.3d 253, 262-63 (3d Cir. 1995) (affirming lower courts denial of improperly documented and inadequately detailed expenses). Interim fee awards are discretionary, and are subject to re-examination and adjustment during the course of the case. In re Stable Mews Assocs., 778 F.2d 121, 123 n.3 (2d Cir. 1985) (interim awards are interlocutory and subject to full review and adjustment at a later date). Argument All Applicants: Percentage Fee Reduction The United States Trustee respectfully requests a percent fee reduction (colloquially known as a hold back) of the requested fees. The Debtors primary plan has not yet gone effective. Consequently, the ultimate benefit to 7 the estates for the services rendered by the professionals simply cannot be assessed at this time. Because those results still are unknown, the imposition of a percentage interim hold back is appropriate. In re Child World, Inc., 185 B.R. 14, 18 (Bankr. S.D.N.Y. 1995) (hold backs, while not mandated by statute, are commonly used by courts to moderate potentially excessive interim allowances and to offer an incentive for timely resolution of the case); see also In re Bank of New England Corp., 134 B.R. 450, 458-59 (Bankr D. Mass. 1991) (because of the difficulty in determining whether services were actual and necessary when reviewing interim applications, bankruptcy courts routinely require percentage reductions until the end of the case), affirmed, 142 B.R. 584 (D. Mass. 1992). Kirkland & Ellis Billing: The applicant seeks fees for billing the estate. Specifically, the applicant seeks $168,650.00 in connection with its Retention and Fee Application project category. See Kirkland & Ellis Fee Application at Exhibit C. Much of this time is for the task of reviewing and editing monthly bills. The applicants relevant time records are attached hereto as Exhibit 1. The time in question is underlined. The review and editing of time records, as opposed to fee applications, is not compensable. See CCT Comms., Inc., 2010 WL 3386947, *9 (Bankr. S.D.N.Y. 8 2010)(the review and editing of time records - as opposed to fee applications - is not compensable.); see also, In re Computer Learning Centers, Inc., 285 B.R. 191, 219-220 (Bankr. E.D. Va. 2002)(those portions of the billing process common to billing both bankruptcy and non-bankruptcy clients are not compensable under section 330 because they are part of the professionals overhead.). Accordingly, the United States Trustee objects to ten percent (10%) of the fees sought, or $16,865.00, by the applicant in this project category (because the applicant fails to list the amount charged for the services, the United States Trustee estimated the amount in question). Support Staff: The applicant seeks no less than $15,556.00 for the services of four timekeepers entitled Conflicts Specialists and Conflicts Coordinators and Research Specialist. See Kirkland & Ellis Fee Application at Exhibit D. 2 These individuals are listed as part of the firms Administrative Services department. A firms internal administrative staff is overhead and not compensable by the estates. See e.g., See In re Almacs, Inc., 178 B.R. 598, 606 (Bankr. D. R.I. 1995) (noting that debtors counsel use of librarian was overhead and was not 2 In response to an inquiry from counsel to the United States Trustee, the applicant advised that although a $6,875.00 charge for the services of a conflicts specialist in the June, 2011 monthly statement was included in the total fees sought, the charge was inadvertently omitted from Exhibit D of the fee application. 9 proper charge against estate); In re First Software Corp., 79 B.R. 108, 123 (Bankr. D. Mass. 1987) (disallowing part of the compensation for research performed by a librarian). Accordingly, the United States Trustee requests that the Court reduce any compensation awarded to applicant by $15,556.00 for services rendered by these individuals. Moelis & Company Morrison & Foerster Jefferies & Company Fried Frank Harris Shriver & Jacobson Subject to the objection contained in the All Applicants, Percentage Fee Reduction subsection herein, the United States Trustee does not object to the amount of compensation sought by the applicant. WHEREFORE, the United States Trustee prays that the Court sustain the objections contained herein and grants such other and further relief as is just and proper. Dated: New York, New York September 20, 2011 Respectfully submitted, TRACY HOPE DAVIS UNITED STATES TRUSTEE
By: /s/ Paul K. Schwartzberg Paul K. Schwartzberg Trial Attorney 33 Whitehall Street, 21 st Floor New York, New York 10004 Tel. No. (212) 510-0500 10 Exhibit 1 Innkeepers USA 18 Retention, Fee App, & Monthly Statements Legal Services for the Period Ending May 31, 2011 Name 5/27/11 Christopher H Langbein 5/31/11 Christopher H Langbein 5/31/11 Christopher H Langbein 5/31/11 Maureen McCarthy 5/31/11 Maureen McCarthy 5/31/11 Brian S Lennon 5/31/11 Todd M Schwartz 1. 20 1. 40 3.40 2.70 .50 .30 3.00 Description Review documents re second interim fee issues (.5); telephone conferences with work1ng group re same ( .7). Correspond with working group re preparation of invoices in compliance with U S. Trustee guidelines (.6); review. revise. and compile documents re same ( . 8). Draft and revise reply re objection to K&E second interim application (2.7); research re same ( . 7) . Draft and finalize April monthly application (2.2); draft notice of filing re same ( .1); file same ( .3); follow-up with Omni Management re service of same (.1). Summarize total amount of holdback for all professionals re the first and second interim fee applications. Review April monthly application. Draft and revise objection re UST objection to interim fee application. 100.70 TOTAL HOURS Page 7 Innkeepers USA 18 Retention, Fee App, & Monthly Statements Leg a 1 Services for the Period Ending May 31, 2011 Name 5/17/11 Jennifer Marines 5/17/11 Shavone Green 5/17/11 Maureen McCarthy 5/18/11 Christopher H Langbein 5/18/11 Ellen J Kratofil 5/20/11 Brian S Lennon 5/23/11 Christopher H Langbein 5/24/11 Christopher H Langbein 5/24/11 Brian S Lennon 5/25/11 Christopher H Langbein 5/25/11 Stephanie 0 Frye 5/26/11 Christopher H Langbein 5/26/11 Anup Sathy, P.C. 1. 00 2.00 .20 1. 40 .30 .50 1. 40 2.10 .20 .70 4.80 .80 1. 50 Description Review various issues re fee applications C .2); correspond with professionals and U.S. Trustee re same C .8). Prepare second interim fee applications Cl. 2 l; coord1 nate de 1 i very to U S Trustee ( .4); correspond v1ith B. Friedman re same (4) File affidavit of service re K&E's second interim fee application and notice of hearing re same. Review and revise invoices re compliance with banRrur:_!_Cl . uS Trustee guide 1 i nes Review docket report for issues re conn i ct of interest and potential parties to be searched. Review U.S. Trutee's objection to second interim fee application (.3); Correspond with A. Sathy re same (.2). Review and revise invoices re comoliance with .... <:.::Tcl""iTS-. Trustee guidelines. Review and reyise invoices re compliance with bankrl!Jlj.f,Y_.I.!J.] es and 0 S. Trustee guide 1 i nes Correspond with the Company re monthly 1 nvoi ces. Review and revise invoices re compliance with bankruprcyTuTes anatrS-:-TTITSte'e guidelines ( . 3 l; telephone conference with T. Schwartz re same ( 4 l . Conflicts research reclaims objection parties (3.1); disclosure analysis re same 0.7J Te 1 ephone conferences with working group re April monthly application (.4); review same ( 4) . Revise monthly application. Page 6 Innkeepers USA 18 Retention, Fee App, & Monthly Statements Legal Services for the Period Ending May 31, 2011 Date 5116111 Christopher H Langbein 5116/11 Jennifer Marines 5/16/11 Daniel R Brown 5/16/11 Steven SeraJeddini 5/16/11 Shavone Green 5/16/11 Stephen E Hessler 5/16/11 Maureen McCarthy 5/16/11 Brian S Lennon 5116/11 Todd M Schwartz 5/16/11 Anup Sathy, P.C. 5/17/11 Christopher H Langbein 5.20 1. 50 3.40 2.20 4' 00 .60 2.20 .90 1. 80 1. 30 .40 Description Review and revise K&E second interim fee application (2 5); correspond with working group re same ( .6); draft and revise notice re same (. 7); review and revise invoices re compliance with bankruptcy rules and U.S. Trustee guidel1nes 0.4). Rev1 ew issues re second interim fee applications ( .3); correspond with P. Schwartzberg and other professionals re same ( 5) ; office conference with B. Friedman re same ( 3); coordinate preparation of binders for UST ( 4). Rev1ew, revis,siQ'!.Qjill re compliance with bankruptcy-rcules and U.S. Trustee guidelines. Review, revise invoices re compl1ance with bant:T'lJ]Jtcy"ruYes ana u.s. Trustee guidelines. Prepare second interim applications of professionals (2.5); coord1nate delivery to U.S. Trustee (10); correspond with B. Friedman re same (.5). Review and revise K&E second interim fee application. Finalize K&E second interim fee application ( 1 0) prepare same for filing with the bankruptcy court ( .4); file same ( .3); finalize notice of hearing re second interim fee apolications ( .2); prepare and file same with tne bankruptcy court ( .3). Review and revise K&E second interim fee application ( 5), review form of notice ( !); correspond with C. Langbein and S Hessler re same(3). Review and ''evise second interim fee application and notice. Revise K&E second interim fee application. Correspond and conferences wlth working group re K&E second interim fee application. Page 5 Innkeepers USA 18 Retention, Fee App. & Monthly Statements Legal Services for the Period Ending May 31, 2011 5/10/11 Maureen McCarthy 5.90 5/11/11 Christopher H Langbein 3.10 5/11/11 Ellen J Kratofil .40 5/12/11 William Guerr1eri 1.10 5/13/11 Gary M Vogt .60 5/14/11 Christopher H Langbein 2.30 5/14/11 Brian S Lennon .30 5/14/11 Todd M Schwartz 1. 50 5/15/11 Christopher H Langbein 1. 80 5/15/ll Stephen E Hessler .80 5/15/11 Maureen McCarthy 1. 60 5/15/11 Brian S Lennon 1.10 5/15/11 Todd M Schwartz 3.40 Description application (3.2). Prepare tota1s fees and hours for attorney and paraprofessionals, total fees and hours by matter categories and totals for expenses by categories (3 2); revise second interim fee application re same (2.7). Draft and revise K&E second interim application. Review docket report for issues re conflict of interest and potential parties to be searched. Review and revise monthly 1nvoices re cOmpjianc_e_ w{i}-:-5anR'rUptc.n'u 1 es and u . s . trustee guidelines. Finalize. file AP Services and Moelis second interim fee applications ( .4); coordinate service of same with Ornni ( . 2). Draft and revise K&E second interim application. Correspond with C. Langbein re K&E second interim fee application. Review and revise second interim fee application. Review and rev'se K&E second 1nterim application (1.5); correspond with working group re same ( .3). Review and revise second interim fee application. Rev i ev1 and revise second i nten m fee application. Review and revise K&E fee application ( 8); correspond with C. Langbein re same ( 3). Review and revise second interim fee application Page 4 Innkeepers USA 18 Retention. Fee App. & Monthly Statements Legal Services for the Period Ending May 31. 2011 Description of Legal Services 5/04/11 Christopher H Langbein 5/05/11 Christopher H Langbein 5/06/11 Ellen J Kratofil 5/07/11 Christopher H Langbein 5/07/11 Daniel R Brown 5/08/11 Daniel R Brown 5/09/11 Christopher H Langbein 5/09/ll Daniel R Brown 5/09/11 Gary M Vogt 5/09/11 Maureen McCarthy 5/09/11 William Guerrieri 5/10/11 Christopher H Langbein 2.50 4. 00 40 2' 10 2.40 180 2' 10 2.40 .40 .20 110 4.50 Description Draft and revise K&E second interim application (2 2); correspond with working group re review of invoices ( .3). Review and revise K&E second interim application (1.4); review documents re same (1. 8) ; correspond with working group re same ( .5); review and revise invoices re compliance with bankruptcy rules and U.S. Trustee guidelines ( .3). Review docket report for issues re conflict of interest and potential parties to be searched. Review and revise K&E second interim application (1.4); review documents re same ( 7)' Review. revise invoices re compliance with bariKrupfcy7U1 guidelines. Review. revise invoices re compliance with baiiRrTiprry ruTesanCf"\:rS. Trustee guide 1 i nes. Review and revise invoices re compliance with ba.iik.rupfcTr-tJTesaiiCJOT Trustee gui del i nes. Review and revise invoices re compliance with banRTilptcT-r'uTes-:mcrl:r:S:-1 rust ee g u i de 1 i n es . Finalize. f1le Moelis March 2011 fee statement ( .3); coordinate service of same with Omni ( .ll . File affidavit of service re March fee statement. Review and revise invoices re compliance with barriZr-upT(y-ru I es and u-:-s-:-rrustee guide 1 i nes. Review and revise invoices re compliance with bantrupt:ty rUTesancf'U'::>-:-irustee guide 1 i nes (1.3); draft and revise K&E second interim Page 3 Innkeepers USA 18 Retention. Fee App. & Monthly Statements Legal Serv1ces for the Period Ending April 30. 2011 Description of Legal Services Date 4/01/11 Marc J Carmel 4/06/ll Chn s topher II I angbei n 4/06/11 Ellen J Kratofil 4/06/11 Stephanie D Frye 4/06/11 Wl11iam Guerrier1 4/07/11 Jonathan Zinman 4/07/ll Christopher H Langbein 4/07 ill Ell en J Kratofll 4/08/1] Ellen J Kratofi l 4110/11 Chn stopher H Langbein 4110/ll Damel R Brown 4/ll/11 Christopher H Langbein 4/ll/ll Daniel R Brown .30 .50 140 3.50 100 2.80 2.30 . 70 .40 l .30 2.30 3.20 1.40 Description Correspond with work1ng group re professional retention issues ( .2): telephone conference with N. Cook re same (. 1) Correspond with work1ng group re 1nvoice rev1ew ( 2): review materials re same (.3) Conduct conflicts search re claims objections ( .8): correspond with conflicts team re same (. 2): review conflicts search results (. 4) Research re disclosure of parties submi ttecl as claims objections. Review and rev1 se i nv01 ces re como l i ance vn th banK'rlij)tc.irTiTesand u.s. Trustee gu1del ines Review and rev1se invoices re compliance vnth Trustee guidelines. Review and revise invoices re compliance wlth barrkruptcYT'Ulesancru-:5 Trustee guide 1 i nes (1 6): rev1ew and analyze issues re second i nten m application ( . 5) : correspond with working group re same ( 2) . Conduct confl1cts search re clams objections ( .4): review conf 1 1cts search resu'its ( .3) Rev1ew docket report for issues re conflict of 1nterest. Rev1ew and rev1se invoices re compliance vnth bankT'UprcY7uTesana us Trustee guidelines and revise invoices re compliance w1th bar1KrTTpfcY ruTes and US Trustee gu1delines. i ew and revise invoices re camp l i a nee wHh bankruptcy-rcrle-s-dlld-&-5-:-T-r us tee g u i de 1 i ne s Revie1' .9.!19 .... ir.voices re compliance vnth banKruptcy rules and U.S. Trustee gu1del1nes. Page 3 Innkeepers USA 18 Retention. r:ee 1\pp, & Monthly Statements Legal Serv1ces For the Period Ending Apr1l 30. 2011 4/12/11 Chr1stopher H Langbein 4/13/11 Chr1stopher H Langbein 4/13/11 Ellen J Kratofil 4/14/11 Christopher H Langbein 4/14/11 Ellen J Kratof1l 4/15/11 Cnristopher H Langbein 4/15/11 Emily S O'Connor 4/15111 Maureen McCarthy 4/18/11 Jonathan Z1nman 4/19/1] Jonathan Zinman 4/19/ll Chr1stopher H Langbe1n 4119/ll Dan:el R Brown 4/20111 Chr1stopher H l_angbei n 4/21/J] Chr: stopher H 'cangbei n 2.80 .70 .40 .80 3.90 1.40 1. 40 2.40 .70 2.40 .30 3.40 2.60 l.l 0 Description Review and revise invoices re comp l i a nee wHh tlankruptcy rul'es.anci"IIS. Trustee guidelines Rev1ew and revise invoices re compliance w1th bank'ruprcyruies(;na'lTS:--rrustee guidelines C .4); telephone conferences w1th working group re same ( .3). Review docket report for issues re conflict of interest. Review and analyze documents re K&E second interim application. Prepare claims obJection parties for confl1cts search (2 7); confllcts search and analysis re same Cl 2). Research and summar1ze caselaw re professional compensation. Retrieve and organize intenm fee appl icat1on materials. Prepare fee statements for dlstribut ion re second interim fee app 11 cation (. 4); correspond with E. 0' Connor re same ( . 1); draft summary matenals re same ( 6); draft second interim fee application (1.3). Analyze retent1on issue (.4); partiCipate 1n telephone conference with the Company re same ( 3) Review and revise invoices re comoliance w1th oankr1iptcy ruTes Trnstee guidelines. Correspond w1 th work 1 ng group re 1 ssues re rev1ew of invoices. Rev1ew and revise invoices re compl1ance w:th Trustee guide 11 nes Review and r'evi se invoices re comp l i a nee vn th oahfruplcy-ruTes-anau-:-s-:-- Trustee gu 1 de'' nes. Rev1ew and revise invoices re compliance w1th bankruptcYT'Uies-and'U-:s----rrustee gu 1 de 11 nes. Page 4 Innkeepers USA 18 Retentwn. Fee App, & Monthly Statements Legal Services for the Period Ending April 30, 2011 4/21/11 Jenni fer Marines 4/2l!ll Jennlfer Mannes 4/22/ll Jennifer Mar1nes 4/22/11 Brian S Lennon 4/23/11 Christopher H Langbein 4/25/ll Marc J Carmel 4/25/11 Gary M Vogt 4/26/11 Jeffrey M Armington 4/26/11 Chr1stopher il Langbe1n 4/28/ll ,Jenrn fer Mar1 nes 4/29/ll Christopher H Langbein 4/29/ll Maureen McCarthy Hours l. 00 .40 1. DO . 60 2.20 Description Analyze issues re interim fee application ( .6): telephone conference with C. Langbein re sa me ( . 4 l . Rev 1 ew 1 ssues re retention 1 nvoi ces and cor-respond with N. Cook re same. Analyze 1ssues re interim fee application ( 4): correspondence and telephone conference I'Jith creditors' committee re same ( 6) . Review monthly fee statement. Draft K&E second interim appl1cat10n ( 8); revie'J invoices re matter surrmaries for same (] 4) 2.20 Review and rev1se invoices re compliance w1th -oariiZrTiptcy-rmes-anaiTS-. lri:istee guidelines. .30 File Moel is February 2011 fee statement C .2): coordinate service of same with Omni C .ll. 3. 20 Research retent ion of compensat 10n consultants (2.4): correspondence with J. Marines and B Lennon re same (. 8). 1. 20 .40 1 70 2.80 Rev1ew and rev1se invoices re compliance vnth b1lnkrupt-crrme:;-1lmtlr:-s-:--rru:; tee g u 1 de 11 nes 0.1): correspond wiU1 workmg group re same ()) A.nalyze 1ssues re payment of fees and holdbacks. Review and revlse invoices re compliance with bankn:<ptcy-nle-s-ancr-u-:-s-:--frustl'e guidelines ( 3): prepare monthly appl1cat1on for filing (] 4) Final1ze March fee statement and not1ce re same (2 2): prepare same for filing ( .2): file monthly applicat10n ( .4). 62.40 TOTAL HOURS Page 5 Innkeepers USA 18 Retention. Fee App, & Monthly Statements Legal Services for the Period Ending June 29. 2011 Description of Legal Services Date Name 6/01/11 Maureen McCarthy 6/02/11 Chn stopher H Langbein 6/02/11 Maureen 6/02/11 Anup Sathy. P.C. 6/03/ll Christopher H Langbein 6/03/11 Christopher H Langbein 6/03/11 Christopher H Langbein 6/03/11 Linda A Scussel 6/03/11 Maureen McCarthy 6/03/11 Brian S Lennon 6/03/11 W1lliam Guerrieri 6/06/11 Jonathan Zinman 6/06111 Jeffrey M Armington 6/06/11 Christopher H Langbe1n Hours .80 . 60 3 20 . 20 .40 . 60 3.60 l. 50 .70 Description Review second interim fee applications and prepare summary of fees and expenses . Review and revise invoices re compliance with bank-ruptcy-runs-sailcflJ:"S. Trustee guide 1 i nes. Draft and revise second interim fee application order . Review and revise interim fee order. Correspond with working group re May monthly fee application . Review documents. correspondence re unredacted Basta declaration (.3): telephone conferences with working group re same ( .3). Draft and revise proposed second omnibus 1nterim fee order (2.3): correspond with working group. professionals re same ( .6): research re same ( .7). Draft exhibits to unredacted third supplemental declaration. Review second interim fee application order and correspond wHh C. Lang be', n re changes to same . . 40 Review second interim fee order. 1.00 Review and revise invoices re compliance with Trustee guidelines. .70 RevieVJ issues re supplemental K&E declarat1on ( 5): correspond with working group re same ( 2) 1.60 Review and rev1se 1nvo:ces re compi1ance wlth -15ariKr'uPlC:YT1:i4'1''SOmJ-tJ3':"1rustee gu1 del Hies. 1 80 Rev1ew documents re third supplemental Basta declaration ( I): telephone conferences with Page 3 Innkeepers USA 18 Retention, Fee App, & Monthly Statements Legal Services for the Period Ending June 29, 2011 Date 6/06/11 Christopher H Langbein 6/06/11 Christopher H Langbein 6/06/11 Gary M Vogt 6/06/11 Maureen McCarthy 6/06/11 Brian S Lennon 6/07/11 Jeffrey M Armington 6/07/11 Christopher H Langbein 2.80 3.50 .40 . 90 .20 1. 80 4.90 -------- 6/07/11 Gary M Vogt .50 6/07/11 Gary M Vogt .30 6/07 Ill Beth friedman .30 6/07/11 Brian S Lennon .40 6/07/11 Anup Sathy, P.C. .30 Description Moelis. working group re same (.6): correspond with working group re same ( .5). Review and revise invoices re compliance with bankruptcy rules and U.S. Trustee guidelines (2.5): telephone conferences wlth working group re same ( .3). Review and revise proposed second omm bus interim fee order (1.4): telephone conferences with working group re same ( .4): draft notlce re same ( .5): research and draft hearing notes re same (1 2). Finalize. file Moelis April 2011 fee application ( 3): coordinate serv1ce of same with Omni ( . 1) . Revise second interim fee order . Review and revise proposed second 1nter1m fee order. Revl_ew .. involces re compllance with guide 1 i nes. Review and revise second interim fee order ( 2. 2): draft notice and documents re unredacted supplemental Basta declaration and correspond with working group re same (1.3): review and revise invoices re compliance with bankruptcy rules and US. Trustee gu1delines (]. 4). ---- -- Compll e quarterly fee application materials requested for June 7 hearing. Finalize. file AP Services April status report ( .2): coordinate service of same with Omni ( .ll . Correspond wlth work1ng group re issues re fee order. Review issues re Creditors' Committee counsel compensation. Review and revise second interim fee order. Page 4 Innkeepers USA 18 Retention. Fee App, & Monthly Statements Legal Services for the Period Ending June 29, 2011 6/08/11 Christopher H Langbein 140 6/08/11 Christopher H Langbein 150 6/08111 Daniel R Brown 3. 60 6/08/11 Steven Serajeddini 2.50 6/09111 Christopher H Langbein 2.90 6/09/11 William Guerrieri .20 6/10/11 Jonathan Zinman . 50 6/10/11 Christopher H Langbein .30 6110/11 Christopher H Langbein 4.20 6/10/11 Jennifer Marines .50 6/10/11 Gary M Vogt . 40 Description Review and re.vise.j_nwi.(:es re comp l i a nee with bankruptCy rules and U.S. lrustee gu1dellnes Review and revise second interim fee order C.4l; review documents. correspondence re same (.6); correspond and telephone conferences w1th constituents. working group re same C 5 l . Review and revise invoices re comp 1 i ance with oa-rikruptcJ'rtHes-<iNd tr:s Trustee guidelines. Review and revise invoices re compl'iance with ban!truptcyTOlestr"S-:-Trustee guide 1 i nes. Review and revise unredacted supplemental declaration ( .7); correspond and conferences with working group re same ( . 2); correspond v1ith working group re May monthly fee application ( .2); review and revise invoices re compliance with bankruptcy rules and US. Trustee guidelines Cl.l); correspond and telephone conferences v1ith \VOrking group. professionals re second interim fee order (.6); correspond with the Bankruptcy Court re same C 1 l. Correspond with C. Langbein re May monthly fee application. Correspond with working group re unredacted supp 1 omenta 1 dec 1 a rations. Review and revise documents re unredacted supplemental declaration (8); correspond and te 1 ephone conferences with working group. the Company re same (.5). Rev1ew a.n<.J .. invoices re compliance bankr'uptcy rure;;-ari"iflr::;. Trustee guidelines (2.8); correspond with group re second interim order ( .8); draft summary information re K&E compensation (.6). Reviev1 May monthly fee application. Finalize. file unredacted schedu I es to Basta Page 5 Innkeepers USA 18 Retention, Fee App, & Monthly Statements Legal Services for the Period Ending June 29, 2011 6/10/11 Maureen McCarthy 6/10/11 Brian S Lennon 6/10/11 Brian S Lennon 6/10/11 William Guerrieri 6/10/11 Anup Sathy, P.C. 6/13/11 Stephanie 0 Frye 6114/11 Christopher H Langbein 6/14111 Stephanie D Frye 6/14/11 Brian S Lennon 6/15/11 Jennifer Mar1nes 6/20/11 Shavone Green 6/20/11 Stephanie o Frye 6/21/11 Linda A Scussel Hours . 30 . 30 .90 .30 . 40 .30 l. 30 4.60 .30 .40 .50 .60 3.30 Description third supplemental declaration in support of K&E retention C .3); coordinate service of same with Omni C .1) . Review summary re second interim fee period payment matters (.2); correspond with N. Ford and C. Langbein re same (.1) . Review issues re K&E compensat10n. Review and revise disclosure re supplemental declaration ( .5); correspond with the Company resame(.4). Correspond with working group re confident i a 1 ity agreements and retention declarations . Revise supplemental affidavit. Conduct organization and preparation for disclosure analysis of parties submitted in connection with ninth omnibus claims objection. RevJ.B\tilDQ.E> .. YJ .. UllYOi ces _ _r:e _omp l i a nee with bankruptcy ru I es and U S. Tr.ustee guidelines. Conduct research re parties submitted rn connection with ninth omnibus claims ObJection (2.1); conduct disclosure analys1s re parties submitted in connection wiUr ninth omnibus claims objection (2.5). Correspond with L. Marinuzzi and K. Beckeman re Cred1 tors' Comm1 ttee fees. Telephone conference with L Marinuzzi re holdback ( 2); correspond with AP Services re same ( 2) Compile fee-related pleadings for attorney review. Prepare disclosure analysis for supplemental declaration. Conduct organization and preparation of Page 6 Innkeepers USA 18 Retention. Fee App. & Month"ly Statements Legal Services for the Per1od Ending June 29. 2011 6/26/11 Christopher H Langbein 3.80 6/26/11 Cara C Cullin 1.20 6127 Ill Christopher H Langbein 4.60 6/27/11 Stephanie D Frye 4.60 6/27/11 Linda A Scussel 3.80 6/27/11 Maureen McCarthy .50 6/27/ll Todd M Schwartz 3.70 6/28/11 Christopher H Langbe1n l. 90 6/28/ll L1nda A Scussel 2.80 Description Rev.iew and revise invoices re compliance with oankru.ptcyruFisa-iidu s Trustee guidelines Review supplemental disc':osures re creditors submitted re filed schedules. utility providers. and vendors. Review and revise invoices re compliance with Trustee guide 1 i nes (4. 1); correspond with working group re same ( 5) Conduct organization and preparation for disclosure analysis of parties submitted under Rule 2002 (1 8); conduct research re parties submitted under Rule 2002 parties 0.4); conduct disclosure analysis re parties submltted as claims register and Rule 2002 ( .9); conduct organization and review of disclosures re parties submitted as cla1ms register and Rule 2002 ( .5). Conduct analysis for disclosure of creditors and other parties submitted as claims register parties (2.3): conduct organization and review of disclosures relating to creditors and other parties submitted as same and Rule 2002 parties (1.0): revieVJ and update confl"icts trackjng chart re the fourth supplemental ( .5). Draft May monthly fee appl1cation and notice re same ( .4); correspond with VJorking group re same ( . l) . Review and revise fee application re compnance wTmtcmkTuptcyc\J 1 es and u.s. Trustee gu1delines. Correspond and telephone conferences with working group re May monthly fee application (l 4): review and revise pleading re same ( 5) Review and update confl1 cts tracking chart re fourth suppiernental declaration ( .8): draft exhibits re same (2.0). Page 8 Innkeepers USA 18 Retentlon. Fee App. & Monthly Statements Legal Services for the Period Ending June 29. 2011 6/28/11 Maureen McCarthy 6/28/ll Todd M Schwartz 6/29/11 Christopher H Langbein 6/29/11 Todd M Schwartz 6/29/11 Anup Sathy, P.C. .20 3.10 .60 1. 00 1. 50 Description Review summary re holdback for second interim fee application. Review and revise fee 2JJ_p 1 i cation re c0111!JlTance-W1Tilbank ruptcy ru 1 es and U.s Trustee guidelines. Correspond and telephone conferences with working group re May monthly fee application ( .4); reviev1 documents re same ( .2). Telephone conference with working group re monthly fee application (.3); review and revise same C.7). Revise monthly fee ication. 124.30 TOTAL HOURS Page 9 Innkeepers USA 18 Retention, Fee App, & Monthly Statements Legal Services for the Period Ending July 31, 2011 Description of Legal Services Date Name 6/30/ll Maureen McCarthy 6/30/11 Todd M Schwartz 6/30/11 Anup Sathy, P C. 7/05/11 Christopher H Langbein 7/06/11 Jonathan Zinman 7/06/11 Christopher H Langbein 7/06/11 Christopher H Langbein 7/06/11 Jennifer Mar1nes 7/06111 Maureen McCarthy 7/07/11 Chn stopher H Langbein 7/0/111 Jennifer Marines 7/08/11 Christopher H Langbein 3.00 2.60 1. 60 2.90 .50 1. 70 3.20 . 20 . 70 2.20 l. 20 4.30 Description Draft and finalize May monthly application (2.3); draft and finalize notice of filing re same (.3); prepare monthly application and notice for filing (.3); follow-up with Omni Management re service of same ( .1). Review and revise monthly app!ication re comj5T1ance-wTtl1Darikruf)fcy rules and us trustee guidelines (2.1); coordinate filing re same C . 5). Review and revise May monthly application Review documents, precedent re professwnal fee estimate ( 6); draft and revise documents re same (1 3); correspond with working group re same ( .4); correspond with working group re b1lling, invoiclng issues C .6). Address issues re supplemental declaration in support of Kirkland retention. Review documents and correspond with working group re accrued professional claim estimate ( .9); revise documents re same C .8). Correspond with working group re K&E supplemental declaration ( .5); review documents re same ( .4); review ard revise invoices re compl',ance with bankruptcy rules and US. Trustee guidelines (2 3). Address issues re supplemental declaration . Research re final fee application . Review documents, precedent re fmal fee application Cl.ll; draft same C 5). Telephone conferences with B. Bacal re late fee payments ( .5); review documents re same (7) Review and revise invoices re compliance with Page 3 Innkeepers USA 18 Retention. Fee App. & Monthly Statements Legal Services for the Period Ending July 31. 2011 7/11/11 Christopher H Langbein 7/11/11 Daniel R Brown 7/11/11 Br1an S Lennon 7/12/11 Christopher H Langbein 7112/11 Gary M Vogt 7/12/11 Jacob Goldfinger 7/12/11 Brian S Lennon 7/14/11 Christopher H Langbein 7/16/11 Christopher H Langbein 7118111 Maureen McCarthy 7/19/1! Christopher H Langbein 3.00 3.30 .30 3.40 .50 .40 . 20 l. 20 l. 30 4.70 3.40 Description bankruptcy rules and U.S. Trustee gu1delines (3 7); correspond with work1ng group re holdback payment issues (.6). Review documents re fourth supplemental K&E declaration ( 8); correspond with working group re same ( .3); review and revise same (.3); coordinate filing of same (.6); review and revise invoices re compl1ance with bankruptcy rules and U.S. Trustee guidelines (1' 0) Review, revise invoices re compliance with bank rupfcy--r-uYesanifD-s Trustee gu i de 1 i nes (3.2); correspond with working group re same ( 1 ) Review supplemental declarat10n. Review and revise invoices re compliance with bonkruptcy-rulesarWu. S. Trustee guidelines. Coordinate filing, service of fourth supplemental declaration in support of K&E retention. Prepare supplemental K&E retention declaration for filing and coordinate service of same. Review and revise supplemental declaration . Review and revise invoices re compliance with bankruptcy-ru1e_s __ iinaU_:>.Trus tee guide 1 i nes ( .8); correspond with working group re fee issues(.4). Review and revise invoices re como1iance with Trustee' gu1 de 1 i nes. Draft third interim fee application (3 5); review precedent re same (1.0); telephone conference with C. Langbein re final fee application matters ( .2). Review and revise 1 nvoi ces re comp 1 i a nee with oankrl.ipfcjirU1Es-Cindus- Trnstee guide l1 nes. Page 4 Innkeepers USA 18 Retention. Fee App. & Monthly Statements Legal Services for the Period Ending July 31. 2011 7/20/11 Christopher H Langbein 7/20/11 William Guerrieri 7/21/11 Christopher H Langbein 7/22/11 Brian S Lennon 7/25111 Christopher H Langbein 7/25/11 Linda A Scussel 7/26/11 Christopher H Langbein 7/26/11 Todd M Schwartz 7/26/11 Todd M Schwartz 7/27/11 Christopher H Langbein 7/28/11 Christopher H Langbe1n 7/29111 Christopher H Iangbein 7/29/11 Maureen McCarthy Hours Description 2.30 Review and revise invoices re compliance with r1Tles'aiia U S Trustee guidelines .70 Review and revise invoices re compliance with oaiiKYupfcT'coae:san'kruptcy Rules. interim compensation order. and U.S. Trustee guidelines 1. 20 Revi ew and rev1 se invoices re camp 1 i ance with 15'aFik'ruptcy'fuTes"and-U s Trustee guidelines .20 Correspond vJith N. Cook re monthly fees. 3.80 Review and,revise invoices re compliance with banlCruplT.n''uTesanalJ:'S. Trustee guidelines C3 6); correspond with T. Schwartz re same ( 2) .50 Correspond with C. Langbein re supplemental declaration issues. .50 Conferences with working group re fee and conflicts issues. 2.50 Review and rev1se fee application re compliance wiH1 hankruptc:y rules and US trustee guidelines. 3.30 Review and revise fee application re comphance'with bankruptcy rules and US trustee guidel1nes. 2 50 Draft third interim fee application Cl7J: review documents, Jieadings re same (.8). . 60 1.30 2.90 Review documents and correspond with AP Services re fee 1 ssues C. 3); correspond v1i th working group re June 1nvoices ( .3). Review invoices 1n preparation for filing ion and notice re same ( .5): correspond with v1orking group re filing re same (. 4). Draft and final1ze June monthly application and notice (2 5); prepare same for filing (3): coordinate serv1ce with Omni Management ( 1 ) Page 5 Innkeepers USA 18 Retention. Fee App, & Monthly Statements Legal Services for the Period Ending July 31. 2011 Description 7/29/11 Anup Sathy, P.C. 2.10 Revie\; and revise June monthly application. 70.20 TOTAL HOURS Page 6