Document Page 1 of 13 IN THE UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION In re: KAISER GYPSUM COMPANY, INC., et al., 1 Debtors. Chapter 11 Case No. 16-31602 Jointly Administered FIRST INTERIM APPLICATION FOR FEES AND EXPENSES INCURRED BY AS SPECIAL OREGON COUNSEL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS FOR THE PERIOD FROM NOVEMBER 1, 2016 THROUGH DECEMBER 20, 2016 Name of Applicant: Authorized to Provide Professional Services to: Date of Retention: Sussman Shank LLP Official Committee of Unsecured Creditors Order entered on December 6, 2016, effective as of November 1, 2016 Period for which compensation and reimbursement is sought: November 1, 2016 through December 20, 2016 Amount of Compensation sought as actual, reasonable and necessary: $26,013.00 Amount of Expense Reimbursement sought as actual, reasonable and necessary: Total amount of Compensation and Expense Reimbursement sought as actual, reasonable and necessary: $1,060.50 $27,073.50 This is the first interim fee application filed by Sussman Shank LLP. 1 The Debtors are the following entities (the last four digits of their respective taxpayer identification numbers follow in parentheses: Kaiser Gypsum Company, Inc. (0188 and Hanson Permanente Cement, Inc. (7313. The Debtors address is 300 E. John Carpenter Freeway, Irving, Texas 75062. 149060.01600/104866857v.1
Document Page 2 of 13 IN THE UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION In re: KAISER GYPSUM COMPANY, INC., et al., Debtors. Chapter 11 Case No. 16-31602 Jointly Administered FIRST INTERIM APPLICATION FOR FEES AND EXPENSES INCURRED BY AS SPECIAL OREGON COUNSEL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS FOR THE PERIOD FROM NOVEMBER 1, 2016 THROUGH DECEMBER 20, 2016 Sussman Shank LLP ( Sussman Shank, Special Oregon Counsel to the Official Committee of Unsecured Creditors (the Committee of the above-captioned debtors (the Debtors, pursuant to 11 USC 328, 330, 331, and subject to the procedures set forth in the Bankruptcy Code, Rule 2016 of the Federal Rules of Bankruptcy Procedure, and the Order Establishing Procedures for Interim Compensation and Reimbursement of Expenses of Professionals [Docket No. 216] (the Interim Compensation Order, submits its First Interim Application (the Application for Fees and Expenses Incurred for the period From November 1, 2016 through December 20, 2016 (the Interim Period. By this Application, Sussman Shank hereby moves this Court for an order awarding Sussman Shank reasonable compensation for the Interim Period for professional services rendered to the Committee in the amount of $26,013.00 and reimbursement for actual and necessary expenses incurred in the amount of $1,060.50 for a total of $27,073.50. In support of this Application, Sussman Shank represents as follows: 149060.01600/104866857v.1
Document Page 3 of 13 JURISDICTION 1. The Court has jurisdiction over this Application pursuant to 28 U.S.C. 157 and 1334. This is a core proceeding within the meaning of 28 U.S.C. 157(b(2. BACKGROUND 1. On September 30, 2016, the Debtors filed with this Court their voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code. 2. Upon information and belief, the Debtors have continued to operate their businesses and manage their property as debtors-in-possession, pursuant to Sections 1107(a and 1108 of the Bankruptcy Code. 3. On October 14, 2016, upon the recommendation of the United States Bankruptcy Administrator for the Western District of North Carolina (the Bankruptcy Administrator, the Court entered the Order appointing the Committee [Docket No. 84]. The Committee currently is comprised of three members: (i Armstrong World Industries, Inc.; (ii Owens Corning; and (iii The Boeing Company. 4. On December 6, 2016, upon prior application of the Committee, the Court entered an ex parte order authorizing the retention and employment of Sussman Shank as Special Oregon Counsel to the Committee, effective as of November 1, 2016 [Docket No. 268]. 5. Pursuant to the Interim Compensation Order, professionals may request monthly compensation and reimbursement. Such requests are to be served on certain identified interested parties for review. If no objection to a professional s request is received within ten (10 days of such request, the Debtors are authorized to pay 90% of the fees and 100% of the expenses requested. The Interim Compensation Order also requires each retained professional to file, approximately every four months, an application for interim Court approval and allowance, pursuant to 149060.01600/104866857v.1
Document Page 4 of 13 Section 331 of the Bankruptcy Code, of 100% of the compensation and reimbursement expenses for the prior four months. COMPENSATION RECEIVED DURING INTERIM PERIOD 6. All services for which Sussman Shank seeks compensation were performed consonant with Sussman Shank s role as Special Oregon Counsel to the Committee. Sussman Shank has received payment from the Debtors for fees and expenses incurred during the Interim Period as follows: Date of Period Covered by Requested Requested Payment Request Requested Fees Expenses Received 12/9/2016 11/1/16-11/20/16 $13,800.00 $ 375.52 $12,795.52 1/17/2017 11/21/16-12/20/16 $12,213.00 $ 684.98 $ 0 2 TOTAL $26,013.00 $1,060.50 SERVICES RENDERED 7. Attached hereto as Exhibit A are detailed descriptions of the services performed and expenses incurred by Sussman Shank during the Interim Period. In summary, Sussman Shank professionals expended 52.3 hours in rendering services to the Committee during the Interim Period resulting in fees of $26,013.00. Sussman Shank served as special local Oregon counsel in the litigation styled; Kaiser Gypsum Company, Inc. and Hanson Permanante Cement, Inc. v. AIU Insurance Company, et al (US Bankruptcy Court for the District of Oregon Case No. 16-03127-rld (the Adversary Proceeding. 8. In the Adversary Proceeding, Sussman Shank, among other things, assisted Blank Rome, lead counsel, in obtaining an order allowing the Committee to intervene as a party joining with the Debtor s in opposing the transfer of the Adversary Proceeding to the US Bankruptcy Court for the Western District of North Carolina. Sussman Shank also assisted by reviewing and revising 2 Application for this interim monthly billing is pending. Sussman Shank has not yet received payment of this invoice, but anticipates receive payment of 90% of the fees and 100% of the expenses prior to the time of the hearing on this Application. 149060.01600/104866857v.1
Document Page 5 of 13 pleadings Blank Rome drafted to ensure its pleadings conformed to Oregon practice and procedures; advised Blank Rome on issues generally relating to appearing in and practicing in the Oregon Bankruptcy Court; communicated with counsel for the Oregon Department of Justice with respect to its intervention in the Adversary Proceeding; obtained admission Pro Hac Vice in the Adversary Proceeding for Blank Rome attorneys; participated in hearings in the Adversary Proceeding; and provided such other services as were reasonable and necessary in furtherance of the goals of the Committee in the Adversary Proceeding. To the extent that charges for services rendered or expense incurred relate to the Interim Period but were not processed prior to the preparation of, or otherwise included in, this Application, Sussman Shank reserves the right to request additional compensation for such services and reimbursement of such expenses in future applications. 9. A summary of Sussman Shank s professionals and paraprofessionals who have rendered services, and the total hours such individuals expended during the Interim period is included on Exhibit A. DISBURSEMENTS 10. The Committee requests that Sussman Shank be reimbursed for its actual and necessary expenses incurred during the Interim Period totaling $1,060.50, as itemized on Exhibit A that were billed during the Interim Period. NOTICE 11. Notice of this Application has been given to the Bankruptcy Administrator, counsel for the Debtors, and the Notice Parties under the Interim Compensation Order. WHEREFORE, the Sussman Shank respectfully requests that the Court enter an Order: 1 Allowing interim compensation for Sussman Shank in the amount of $26,013.00 as reasonable, actual and necessary for professional services rendered by Sussman Shank during the Interim Period and interim reimbursement of expenses incurred during the Interim Period of $1,060.50 as 149060.01600/104866857v.1
Document Page 6 of 13 reasonable, actual, and necessary; 2 Authorizing and directing the Debtors to pay Sussman Shank the amount of $27,073.50, which is equal to the sum of 100% of Sussman Shank s allowed interim compensation and 100% of Sussman Shank s allowed expense reimbursement for the Interim Period; and 3 Granting such other and further relief as the Court deems proper. Dated: Portland, Oregon January 20, 2017 By /s/ Howard M. Levine Howard M. Levine, Oregon State Bar No. 800730 3 1000 SW Broadway, Suite 1400 Portland, OR 97205-3089 Telephone: (503 227-1111 Facsimile: (503 248-0130 E-Mail: hlevine@sussmanshank.com and Andrew T. Houston (Bar No. 36208 MOON WRIGHT & HOUSTON, PLLC 121 W. Trade Street, Suite 1950 Charlotte, North Carolina 28202 Telephone: (704 944-6560 3 Admitted in Oregon and Washington state; not admitted in the Western District of North Carolina 149060.01600/104866857v.1
Document Page 7 of 13 EXHIBIT A 149060.01600/104866857v.1
Document Page 8 of 13 Sussman Shank LLP ATTORNEYS 1000 SW Broadway, Suite 1400 Portland, Oregon 97205 main 503.227.1111 or 800.352.7078 fax 503.248.0130 SUSSMANSHANK.COM UNSECURED CREDITORS' COMMITTEE FOR KAISER GYPSUM COMPANY, INC. AND HANSON PERMANENTE CEMENT, INC. c/o Blank Rome LLP Attn: Jeffrey Rhodes 1825 Eye Street NW Washington D.C. 20006 December 07, 2016 Client ID 23810-001 HML Invoice No. 21995 Fees T.K. Hours Amount 1 1/15/16 Calendar continued hearing on Motion to change venue; calendar deadlines for reply and response to motion to transfer and motion to remand Emails to/from Shellene Iverson at Capri Iverson Reporting regarding timeline for transcript 1 1/16/16 Telephone call to Judge Dunn's chambers regarding corrections to Record of Proceedings (.3; call to Jeff Rhodes regarding same (.1 11/17/16 Review and revise Employment Application KAM 0.40 KAM 0.30 HML 0.40 HML 1.10 $84.00 $63.00 $204.00 $561.00 1 1/18/16 Revise application regarding appointment HML 1.90 $969.00 Emails from/to attorney Howard Levine regarding status of hearing transcript KAM 0.20 $42.00 11/21/16 Revise Application; email to/from Jeff Rhodes regarding application 1 1/22/16 Telephone conversation with Carolyn Wade regarding Oregon DOJ role in litigation (.3; email to/from Jeff Rhodes regarding Oregon DEQ (.4 HML 0.90 $459.00 HML 0.70 $357.00 Review email and transcript received from Shellene Iverson at Capri- Iverson; email to/from Shellene Iverson regarding invoice for transcript; email transcript to attorney Howard Levine KAM 0.30 $63.00 1 1/23/16 Email to Jeff Rhodes regarding Oregon DOJ mediation HML 0.20 $102.00 Review Oregon DOJ Motion (.6; email client regarding same (.3 HML 0.90 $459.00 1 1/24/16 Read pleadings filed by Oregon DEQ regarding intervention HML 0.30 $153.00 Review Justin Lavella email regarding Oregon DOJ pleadings (.2; prepare email response regarding same (.2 1 1/28/16 Telephone call with Jeff Rhodes regarding Oregon DEQ role, venue, remand strategy HML 0.40 HML 0.60 $204.00 $306.00 Telephone call with Justin Lavelle regarding DEQ (.3; call with Justin Lavelle and Carolyn Wade regarding DEQ intervention (.3 HML 0.60 $306.00 1 1/29/16 Prepare order granting Motion to Intervene HML 0.30 $153.00 1 1/30/16 Telephone call to Jeff Rhodes regarding strategy, venue HML 0.40 $204.00 EMPLOYER l.d. NO. 93-0461608 Page 2
Document Page 9 of 13 Sussman Shank LLP ATTORNEYS 1000 SW Broadway, Suite 1400 Portland, Oregon 97205 main 503.227.1111 or 800.352.7078 fax 503.248.0130 SUSSMANSHANK.COM UNSECURED CREDITORS' COMMITTEE FOR KAISER GYPSUM COMPANY, INC. AND HANSON PERMANENTE CEMENT, INC. c/o Blank Rome LLP Attn: Jeffrey Rhodes 1825 Eye Street NW Washington D.C. 20006 December 07, 2016 Client ID 23810-001 HML Invoice No. 21995 Fees T.K. Hours Amount 1 1/30/16 Review docket regarding withdrawal of reference; email Jeff Rhodes regarding same HML 0.50 $255.00 Review London Insurer's objection to intervention (.2; email to/from Jeff HML Rhodes regarding same.3 0.50 $255.00 Timekeeper Recap T.K. Name Hours HML LEVINE, HOWARD M. 26.40 KAM MOODY, KATHY A. 1.60 Rate Amount $510.00 $13,464.00 $210.00 $336.00 TOTAL FEES $13,800.00 COSTS AND EXPENSES Amount 1 1 /30/1 6 Duplicating Expenses $340.00 Long Distance Telephone $9.12 Postage $26.40 TOTAL COSTS AND EXPENSES $375.52 TOTAL FEES AND COSTS $14,175.52 PRIOR STATEMENT BALANCE $0.00 CURRENT CHARGES PAY THIS AMOUNT $14,175.52 $14,175.52 Any Payments Received After 12/07/16 Will Appear on Your Next Statement EMPLOYER I.D. NO. 93-0461008 Page 3
Document Page 10 of 13 Sussman Shank LLP ATTORNEYS 1000 SW Broadway, Suite 1400 Portland, Oregon 97205 main 503.227.1111 or 800.352.7078 fax 503.248.0130 SUSSMANSHANK.COM UNSECURED CREDITORS' COMMITTEE FOR KAISER GYPSUM COMPANY, INC. AND HANSON PERMANENTE CEMENT, INC. c/o Blank Rome LLP Attn: Jeffrey Rhodes 1825 Eye Street NW Washington D.C. 20006 December 07, 2016 Client ID 23810-001 HML Invoice No. 21995 - Receive your statement electronically: Contact: AccountingGroup@sussmanshank.com - We accept Visa, MasterCard, Discover & Amex - Pay online at: sussmanshank.com/paymystatement We appreciate your business EMPLOYER i.d. NO. 93-0461608 Page 4
Document Page 11 of 13 ATTORNEYS 1000 SW Broadway, Suite 1400 Portland, Oregon 97205 mom 503.227.1111 or 800.352.7078 fox 503.248.0130 SUSSMANSHANK.COM UNSECURED CREDITORS' COMMITTEE FOR KAISER GYPSUM COMPANY, INC. AND HANSON PERMANENTE CEMENT, INC. c/o Blank Rome LLP Attn: Jeffrey Rhodes 1825 Eye Street NW Washington D.C. 20006 January 13, 2017 Client ID 23810-001 HML Invoice No. 23111 Statement for period through December 20. 2016 LEGAL SERVICES REGARDING: Counsel for Unsecured Creditors' Committee for Kaiser Gypsum Company, Inc. and Hanson Permanente Cement, Inc. (f/k/a Kaiser Cement Corporation Fees T.K. Hours Amount 12/01/16 Revise order regarding intervention (.3; email Jeff Rhodes regarding same (.1 Telephone call with Jeff Rhodes regarding order(.2; review serice list for LBR 9021 compliance (.2; email counsel regarding order (.1 12/02/16 Initial review London Insurers Objection to Remand (1.1; email to Carolyn Wade regarding submission of order regarding intervention (.1 12/06/16 Telephone call with Justin Lavelle regarding strategy (.5, arguments, local practice; review and revise draft reply (3.1 12/07/16 Prepare first fee application (.6; several revisions to Reply (2.8; several discussions with Justin Lavella regarding changes to Reply (.7; review service issues and service list (.2 1 2/1 1 /1 6 Review briefs filed and prepare for hearing 12/12/16 Meeting with Justin Lavella and Jeff Rhodes regarding hearing strategy (1.1; prehearing meeting with Oregon DEQ and DOJ; attend hearing and post-hearing discussion regarding strategy (2.4; review and consider case cited by London regarding remand (.6 Discussion with attorney Howard Levine regarding cd for hearing held; complete request for hearing; multiple telephone calls with Kerrie, Courtroom Deputy Supervisor, regarding request for cd and exchange of request/check for cd; walk to court and pick up cd; request duplication of cd from IT 12/13/16 Telephone call from Doug Pahl regarding hearing 12/14/16 Listen to hearing CD (1.5; email counsel regarding strategy suggestions (.8 12/15/16 Review proposed order (.2; telephone call with Jeff Rhodes regarding changes (.2; email counsel regarding changes (.1; telephone call from Marie Eckert regarding order (.3; prepare revised Order and email counsel (.5 HML 0.40 HML 0.50 HML 1.20 HML 3.60 HML 4.30 HML 2.40 HML 4.10 KAM 0.60 HML 0.20 HML 2.30 HML 1.30 $204.00 $255.00 $612.00 $1,836.00 $2,193.00 $1,224.00 $2,091.00 $126.00 $102.00 $1,173.00 $663.00 EMPLOYER l.d. NO. 93 0461608
Document Page 12 of 13 ATTORNEYS 1000 SW Broadway, Suite 1400 Portland, Oregon 97205 main 503.227.1111 or 800.352.7078 fax 503.248.0130 SUSSMANSHANK.COM UNSECURED CREDITORS' COMMITTEE FOR KAISER GYPSUM COMPANY, INC. AND HANSON PERMANENTE CEMENT, INC. c/o Blank Rome LLP Attn: Jeffrey Rhodes 1825 Eye Street NW Washington D.C. 20006 January 13, 2017 Client ID 23810-001 HML Invoice No. 231 1 1 Fees T.K. Hours Amount 12/16/16 Telephone conference with Carolyn Wade, Scott Kaplan and Marie Eckert (partial regarding form of order and revisions Revise order (.7; email counsel (.2; review email response from Marie Eckert and reply regarding additional changes to order (.4; several follow up emails to counsel with changes to order (.5; email counsel regarding order (.3 12/19/16 Review email from Brian Kelly regarding order (.2; email proposed response to counsel and email to Brian Kelly (.2; review email response regarding order and email counsel (.3 12/20/16 Email Brian Kelly regarding order HML 0.50 HML 2.10 HML 0.70 HML 0.10 $255.00 $1,071.00 $357.00 $51.00 Timekeeper Recap T.K. Name HML LEVINE, HOWARD M. KAM MOODY, KATHY A. Hours Rate 23.70 $510.00 0.60 $210.00 Amount $12,087.00 $126.00 TOTAL FEES $12,213.00 COSTS AND EXPENSES 12/12/16 U.S. BANKRUPTCY COURT-PORTLAND Hearing CD 12/12/16 12/20/16 Automated Legal Research Amount $31.00 $204.26 Duplicating Expenses $365.60 Long Distance Telephone $5.28 Postage $17.27 EMPLOYER I.D. NO. 93-0461608 Page 2
Document Page 13 of 13 ATTORNEYS 1000 SW Broadway, Suite 1400 Portland, Oregon 97205 main 503.227.1111 or 800.352.7078 fax 503.248.0130 SUSSMANSHANK.COM UNSECURED CREDITORS' COMMITTEE FOR KAISER GYPSUM COMPANY, INC. AND HANSON PERMANENTE CEMENT, INC. c/o Blank Rome LLP Attn: Jeffrey Rhodes 1825 Eye Street NW Washington D.C. 20006 January 13, 2017 Client ID 23810-001 HML Invoice No. 23111 COSTS AND EXPENSES Amount 12/20/16 United Parcel Service - Jeffrey Rhodes $61.57 TOTAL COSTS AND EXPENSES $684.98 TOTAL FEES AND COSTS $12,897.98 PRIOR STATEMENT BALANCE CURRENT CHARGES PAY THIS AMOUNT $14,175.52 $12,897.98 $27,073.50 Any Payments Received After 01/13/17 Will Appear on Your Next Statement Detail of Prior Statement Balance Invoice Date Invoice Number Amount Billed Balance Due 12/07/16 21995 $14,175.52 $14,175.52 - Receive your statement electronically: Contact: AccountingGroup@sussmanshank.com - We accept Visa, MasterCard, Discover & Amex - Pay online at: sussmanshank.com/paymystatement We appreciate your business EMPLOYER I.D. NO. 93 0461608 Page 3
Case 16-31602 Doc 334-1 Filed 01/20/17 Entered 01/20/17 16:47:13 Desc Notice of Opportunity for Hearing Page 1 of 2 IN THE UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION In re: KAISER GYPSUM COMPANY, INC., et al., 1 Debtors. Chapter 11 Case No. 16-31602 Jointly Administered NOTICE OF OPPORTUNITY FOR HEARING (No Protest Notice No Hearing Will be Held Unless Request for Hearing is Filed PLEASE TAKE NOTICE that Sussman Shank LLP ( Sussman Special Oregon Counsel to the Official Committee of Unsecured Creditors of Kaiser Gypsum Company, Inc., et al., has filed its First Interim Application for Fees and Expenses Incurred by Sussman Shank LLP as Special Oregon Counsel for the Official Committee of Unsecured Creditors for the Period from November 1, 2016 through November 30, 2016 (the Application. Sussman is seeking allowance of fees in the total amount of $ 26,013.00 and expenses in the total amount of $1,060.50. PLEASE TAKE FURTHER NOTICE that your rights may be affected by the Application. You should read the Application carefully and discuss it with your attorney. If you do not have an attorney, you may wish to consult with one. PLEASE TAKE FURTHER NOTICE that in order for a hearing to be held on the Application, written responses, if any, must be filed on or before FRIDAY, FEBRUARY 3, 2017 (the Response Deadline in order to be considered. If you do not want the Court to grant the relief requested in the Application, or if you oppose it in any way, you MUST: (1 File a formal, written a response with the Bankruptcy Court at: Clerk, United States Bankruptcy Court Charles Jonas Federal Building 401 West Trade Street Charlotte, North Carolina 28234-4189 1 The debtors are the following entities (the last four digits of their respective taxpayer identification numbers follow in parentheses: Kaiser Gypsum Company, Inc. (0188 and Hanson Permanente Cement, Inc. (7313 and hereinafter collectively referred to as the Debtors. 149060.01600/104865384v.1
Case 16-31602 Doc 334-1 Filed 01/20/17 Entered 01/20/17 16:47:13 Desc Notice of Opportunity for Hearing Page 2 of 2 (2 Serve a copy of your response on all parties in interest, including: U.S. Bankruptcy Administrator 402 West Trade Street Charlotte, NC 28202 Howard M. Levine Sussman Shank LLP 1000 SW Broadway, Suite 1400 Portland, OR 97205 PLEASE TAKE FURTHER NOTICE that IF RESPONSES ARE TIMELY FILED, a hearing on the Application will be held on MONDAY, FEBRUARY 13, 2017 at 9:30 a.m. (ET before the Honorable J. Craig Whitley in the Bankruptcy Courtroom 1-4, Charles Jonas Federal Building, 401 West Trade Street, Charlotte, North Carolina 28202. PLEASE TAKE FURTHER NOTICE that, if you or your attorney do not file a written response to the Application on or before the Response Deadline, the Court may grant the relief requested in the Application without a hearing. No further notice will be given. Dated: Charlotte, North Carolina January 20, 2017 MOON WRIGHT & HOUSTON, PLLC /s/ Andrew T. Houston Andrew T. Houston (Bar No. 36208 121 W. Trade Street, Suite 1950 Charlotte, North Carolina 28202 Telephone: (704 944-6560 and Howard M. Levine 1000 SW Broadway, Suite 1400 Portland, OR 97205 149060.01600/104865384v.1