Interim Fee Application
(Debtor's Counsel)

Summary

This template application is for use by counsel to a Chapter 11 debtor in possession who is seeking interim bankruptcy court approval of its fees and expenses. This template includes practical guidance, drafting notes, and an optional clause. Under Section 331 of the Bankruptcy Code, courts are authorized to award interim fees and expense reimbursements every 120 days. A professional must obtain interim court approval before being paid during an ongoing Chapter 11 case. At the end of the Chapter 11 case, the court must again review and ultimately grant final approval of all fees and expenses, and, if circumstances warrant, can revisit its earlier approval of fees and expenses on an interim basis. In larger Chapter 11 cases, debtors often seek a first day order establishing procedures that allow retained professionals to be paid 80 percent of their fees and 100 percent of expenses monthly, subject to later court approval of their fee applications on an interim and final basis. The Office of the U.S. Trustee monitors fees in Chapter 11 cases and has issued fee guidelines for large Chapter 11 cases, referred to as "Appendix B – Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. § 330 by Attorneys in Larger Chapter 11 Cases" (Appendix B Guidelines). The Appendix B Guidelines contain detailed, formal requirements for fee applications, aimed at disclosure and transparency, and easy comparison of rates and market costs in the bankruptcy profession. The Appendix B Guidelines apply to attorneys in all Chapter 11 cases filed on or after November 1, 2013, where the debtor's bankruptcy petition lists $50 million or more in assets and at least $50 million in liabilities (aggregated in jointly administered cases and excluding single-asset real estate cases). The Appendix B Guidelines replace the former fee guidelines (known as Appendix A Guidelines). The Appendix A Guidelines continue to apply to fee applications filed in (1) large Chapter 11 cases by non-attorney professionals, (2) all Chapter 11 cases with less than $50 million in assets and $50 million in liabilities, (3) all single-asset real estate cases, and (4) all cases that are not Chapter 11 cases. Most jurisdictions incorporate both the Appendix B and Appendix A Guidelines into their local rules of bankruptcy procedure. Certain jurisdictions—such as the Southern District of New York—have also issued their own fee guidelines. This template application is intended for use in a larger Chapter 11 case involving jointly administered debtors, and it complies with the Appendix B Guidelines. This template application can be amended to comply with any local rule or chambers procedures governing the submission of attorneys' fees and expenses for interim approval, or for local variations on U.S. Trustee fee guidelines. For more information on interim compensation, see Fee Applications, First Day Filings, Approval of the Debtor's Chapter 11 Professionals, and Retaining and Compensating Creditors' Committees' Professionals. For more information on the Appendix A Guidelines and Appendix B Guidelines, see U.S. Trustee Guidelines and the SDNY Fee Guidelines. For the actual Appendix A and B Guidelines, see Fee Guidelines. To track the hourly rates of the debtor's legal professionals in mega Chapter 11 bankruptcy cases, see Law Firm Rates Tracker (Debtor Professionals Mega Bankruptcies).