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Orianna Health Systems – Creditor OHI Asset RO Objects to Fees of Pepper Hamilton, CohnReznick and Norton Rose Fulbright

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October 24, 2018 – Orianna Health Systems’ creditor OHI Asset RO (the “Omega Entities”) filed an objection to compensation for services rendered and for reimbursement of expenses (the “August Monthly Statements”) [Docket Nos. 1057, 1059, and 1063] for allowance and payment of fees and expenses filed by each of Pepper Hamilton; CohnReznick; and Norton Rose Fulbright US, collectively, the “Committee Professionals” [Docket No. 1125]. The objection asserts, “The August fees and expenses should not be paid in excess of the approved budget amount. Paragraph 8 of the Final Order of Senior Secured Priming Superpriority Postpetition Financing [Docket No. 376] (the ‘Final DIP Order’) requires the Debtors to comply at all times with the Budget Requirements, including the limitations and requirements contained in Section 6.12 of the DIP Credit Agreement. Section 6.12 of the DIP Credit Agreement provides, among other things, that the aggregate amount of fees and expenses incurred by professionals or professional firms retained by the Committee from the Petition Date through the end of any given week shall not exceed the aggregate amount of such fees and expenses set forth in the Approved Budget for the same period. The Omega Entities object to the allowance or payment of any portion of the August fees and expenses in excess of the amount budgeted for the Committee Professionals’ fees and expenses (the ‘Budgeted Amount’) for August 2018….The August Fees and Expenses should not be paid to the extent they were (i) incurred in the investigation or pursuit of challenges to the Omega Entities’ prepetition lien and lease rights, and (ii) exceed the Maximum Investigation Budget. Paragraph 17 of the Final DIP Order imposes an additional limitation on payment of fees and expenses of the Committee Professionals. Under Paragraph 17, not more than $50,000 (the ‘Maximum Investigation Budget’) of the proceeds of the DIP Facility, the DIP Collateral, or Cash Collateral (the ‘DIP Restricted Assets’) may be used for payment of fees, expenses, and costs incurred by the Committee Professionals relating to the investigation of, or challenge to, the Omega Entities’ prepetition claims and liens.”

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The post Orianna Health Systems – Creditor OHI Asset RO Objects to Fees of Pepper Hamilton, CohnReznick and Norton Rose Fulbright appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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