shl Doc 709 Filed 02/19/19 Entered 02/19/19 16:25:50 Main Document Pg 1 of 7

Transcription

1 shl Doc 709 Filed 02/19/19 Entered 02/19/19 16:25:50 Main Document Pg 1 of 7 WHITLEY PENN, LLP Gary A. Scarborough 3600 N. Capital of Texas Hwy Bldg B, Suite 250 Austin, TX Accountant to the Chapter 11 Trustee UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK X : In re: : Chapter 11 : FIRESTAR DIAMOND, INC., et al. : Case No (SHL) : Debtors. 1 : (Jointly Administered) : X FIRST MONTHLY STATEMENT OF FEES AND EXPENSES OF WHITLEY PENN, LLP, AS ACCOUNTANT PURSUANT TO BANKRUPTCY CODE SECTIONS 330 AND 331 FOR PROFESSIONAL SERVICES RENDERED THROUGH JANUARY 31, 2019 Name of Applicant: Authorized to Provide Professional Services to: WHITLEY PENN, LLP Richard Levin, Trustee Effective Date of Retention: November 7, 2018 Period for Which Compensation November 14, 2018 through January 31, 2019 and Reimbursement is Sought: ( Statement Period ) Objection Deadline: March 6, The Debtors and the last four digits of their respective taxpayer identification numbers are as follows: Firestar Diamond, Inc. (2729), Fantasy, Inc. (1673), and Old AJ, Inc. f/k/a A. Jaffe, Inc. (4756).

2 shl Doc 709 Filed 02/19/19 Entered 02/19/19 16:25:50 Main Document Pg 2 of 7 Compensation Sought as Actual, Reasonable and Necessary for Statement Period for Firestar Diamond, Inc. & Fantasy, Inc.: $ 36, Reasonable and Necessary for Statement Period for A. Jaffe, Inc.: $ 33, Reasonable and Necessary for Statement Period for all debtors: $ 69, Reimbursement of Expenses Sought as Actual, Reasonable and Necessary for Statement Period for all debtors: $ Compensation Payable After Objection $55, Deadline (80%): Reimbursement of Expenses Payable $ After Objection Deadline (100%)

3 shl Doc 709 Filed 02/19/19 Entered 02/19/19 16:25:50 Main Document Pg 3 of 7 TIME SUMMARY BY PROFESSIONAL For professional services rendered through January 31, 2019 Firestar Diamond, Inc. and Fantasy, Inc. Name Position Hours Hourly Rate Total Compensation Gary A. Scarborough Tax Partner $385/hour $9, Trey Cook Sr. Tax Manager $265/hour $6, Steven Chesser Tax Senior $200/hour $11, Emily Kaiser Tax Staff $150/hour $8, Reanne Perley Senior Accountant 4.00 $120/hour $ Charlene Kennedy Margaret Miller Staff Accountant Administrative Assistant 3.50 $110/hour $ $75/hour $ A. Jaffe, Inc. Name Position Hours Hourly Rate Total Compensation Gary A. Scarborough Tax Partner $385/hour $10, Trey Cook Sr. Tax Manager $265/hour $4, Steven Chesser Tax Senior $200/hour $8, Sarah Fumagalli Tax Staff $150/hour $10, Margaret Miller Administrative Assistant 2.00 $75/hour $200.00

4 shl Doc 709 Filed 02/19/19 Entered 02/19/19 16:25:50 Main Document Pg 4 of 7 TIME SUMMARY BY CATEGORY/COMPANY For the Period of December 1, 2018 through December 31, 2018 Billing Category/Company Hours Hourly Rate Total Compensation Firestar Diamond, Inc. and Fantasy, Inc Mixed $36, A. Jaffe, Inc Mixed $33,570.75

5 shl Doc 709 Filed 02/19/19 Entered 02/19/19 16:25:50 Main Document Pg 5 of 7 Attached hereto as Exhibit A and Exhibit B are contemporaneously maintained time entries for each individual providing services for the Statement Period. In accordance with the Order Pursuant to Sections 105(a) and 331 of the Bankruptcy Code, Bankruptcy Rule 2016 and Local Rule Establishing Procedures for Monthly Compensation and Reimbursement of Expenses of Professionals, dated March 29, 2018 (the Interim Compensation Order ) [Docket No. 82], Whitley Penn, LLP ( WP ) hereby submits this first monthly fee statement (the First Monthly Fee Statement ), seeking compensation for services rendered incurred as Accountant to the Trustee, for the period from November 14, 2018 through January 31, By this First Monthly Fee Statement, WP seeks payment in the amount of $55,936.20, which is comprised of eighty percent (80%) of the total amount of compensation sought for actual and necessary services rendered during the Statement Period. NOTICE AND OBJECTION PROCEDURES Notice of this First Monthly Fee Statement shall be given by or hand or overnight delivery upon: (a) the Debtors, 592 5th Avenue, 3rd Floor, New York, New York 10036, attn.: Mark Samson, Chief Restructuring Officer; (b) the Debtors counsel, Klestadt Winters Jureller Southard & Stevens, LLP, 200 West 41st Street, 17th Floor, New York, New York 10018, attn.: Ian R. Winters and Joseph C. Corneau, and Forchelli Deegan Terrana LLP, 333 Earle Ovington Blvd., Suite 1010, Uniondale, New York 11553, attn.: Gerard R. Luckman; (c) counsel to Israel Discount Bank of New York, Troutman Sanders LLP, 875 Third Avenue, New York, New York attn.: Brett D. Goodman and Troutman Sanders LLP, 600 Peachtree Street, NE., Suite 3000, Atlanta, Georgia

6 shl Doc 709 Filed 02/19/19 Entered 02/19/19 16:25:50 Main Document Pg 6 of attn.: Harris B. Winsberg and Matthew R. Brooks; (d) counsel to HSBC Bank USA, LLC, Allen & Overy LLP, 1221 Avenue of the Americas, New York, New York 10020, attn.: Ken Coleman; (e) counsel to any Official Committee of Unsecured Creditors appointed in the Chapter II Cases (the Committee ), if one is appointed; (f) counsel for Richard Levin, Esq., Jenner & Block LLP, 919 Third Avenue, New York, New York , attn: Marc Hankin; and (g) the Office of the United States Trustee, 201 Varick Street, Suite 1006, New York, New York 10014, attn.: Richard Morrissey (each a Notice Party and collectively, the Notice Parties ). Objections to this First Monthly Fee Statement, if any, must be served upon the Notice Parties, and by hand or overnight delivery upon Whitley Penn, LLP, 3600 N. Capital of Texas Hwy, Bldg. B., Suite 250, Austin, Texas 78746, Attn: Gary Scarborough, no later than March 6, 2019 at 4:00 p.m. (Prevailing Eastern Time) (the Objection Deadline ), setting forth the nature of the objection and the specific amount of fees or expenses at issue. If no objections to this First Monthly Fee Statement are received by the Objection Deadline, the Trustee shall promptly pay WP 80% of the fees identified in this First Monthly Fee Statement. To the extent that an objection to the First Monthly Fee Statement is received on or before the Objection Deadline, the Trustee shall withhold payment of that portion of this First Monthly Fee Statement to which the objection is directed and promptly pay the remainder of the fees and expenses in the percentages set forth above. To the extent

7 shl Doc 709 Filed 02/19/19 Entered 02/19/19 16:25:50 Main Document Pg 7 of 7 such an objection is not resolved, it shall be preserved and scheduled for consideration at the next interim fee application hearing. RESERVATION OF RIGHTS WP reserves the right to amend the fees and expense reimbursement sought herein in the event that a subsequent review of WP s records reveals that additional professional services were rendered or expenses incurred which were not processed in advance of this First Monthly Fee Statement. In the event such amendments are required, WP reserves the right to seek such additional fees or expenses in any subsequent fee applications or monthly fee statements. Dated: Austin, Texas February 19, 2019 Whitley Penn, LLP By: Gary A. Scarborough 3600 N. Capital of Texas Hwy Bldg B, Suite 250 Austin TX Telephone: (737) gary.scarborough@whitleypenn.com Accountant to the Chapter 11 Trustee

8 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit A Pg 1 of 7 EXHIBIT A

9 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit A Pg 2 of 7 Pay Online: whitleypenn.com/makeapayment Firestar Diamond Inc. Attn: Richard Levin, Chapter 11 Trustee 919 3rd Ave New York, NY February 18, 2019 Invoice: Client: Professional services rendered through January 31, 2019: Corporate 11/14/ Preparation Review of prior year tax returns and planning for tax preparation. Cook, T 0.50 $ $ /15/ Preparation Gathered information request. Chesser 2.00 $ /16/ Preparation Review trial balance and work on adjusting journal entries. Kennedy 1.00 $ /19/ Preparation Review trial balance and work on adjusting journal entries. Kennedy 2.50 $ /20/ Preparation Teleconference with law firm related to additional information needed to complete tax returns. Cook, T 0.25 $ /12/ Preparation Preparation of tax return. Chesser 2.00 $ /14/ Preparation Set up tax binder; import trial balance; add received workpapers to binder - Firestar Diamond. 12/14/ Preparation Set up tax binder; Import trial balance; Add received workpapers to binder for Firestar Diamond, Inc.

10 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit A Whitley Penn LLP Pg 3 of 7 Firestar Diamond Inc. Invoice No Page 2 12/17/ Preparation Continue work on tax return and accounting matters. Scarborough 0.50 $ /17/ Preparation Prepare and update intercompany loan schdule 12/18/ Preparation Work on tax return and related accouting adjustments. Scarborough 1.50 $ /18/ Preparation Work on tax return, consolidating tax adjustments and IRC Section 263A calculation. Scarborough 0.75 $ /18/ Preparation Review debtor entity trial balance; Prepare open item questions. 12/18/ Preparation Teleconference with Gary, Alvarez & Marsal related to remaining workpapers required to complete tax return. Chesser 1.50 $ /19/ Preparation Reviewed prior year Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Form 5472) filed; Researched filing requirement for current year. 12/19/ Preparation Updated tax binder with new workpapers and correspondance. Chesser 0.50 $ /19/ Preparation Updated tax binder with new workpapers and correspondance. Chesser 0.75 $ /28/ Preparation Federal tax return preparation. Kaiser 8.00 $ , /02/ Preparation Work on accounting and tax matters. Work on tax return. Scarborough 1.25 $ /02/ Preparation Work on tax return matters and state allocations. Cook, T 0.60 $ /03/ Preparation Federal tax return preparation. Kaiser 4.50 $

11 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit A Whitley Penn LLP Pg 4 of 7 Firestar Diamond Inc. Invoice No Page 3 01/04/ Preparation Federal tax return preparation. Kaiser 5.50 $ /06/ Preparation Work regarding additional IRC Section 263A costs for Fantasy Inc. Kaiser 4.00 $ /06/ Preparation Work on Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Form 5472) matters. Scarborough 0.70 $ /07/ Preparation Federal tax return preparation. Kaiser 4.00 $ /07/ Preparation Work on federal and state tax return preparation. Cook, T 1.80 $ /08/ Preparation Federal tax return preparation. Kaiser $ , /08/ Preparation Work on federal and state tax return preparation. Cook, T 0.60 $ /08/ Preparation Work on federal and state tax return preparation. Cook, T 2.40 $ /09/ Preparation Work on U.S. Corporation Income Tax Return (Form 1120) and state returns. Scarborough 0.85 $ /09/ Preparation Continue work on tax return input and reconiling trial balance. Kaiser $ , /09/ Preparation Work on federal and state returns Cook, T 3.00 $ /10/ Preparation Work on tax return matters related to Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Form 5472) and IRC Section 263A. Scarborough 1.15 $

12 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit A Whitley Penn LLP Pg 5 of 7 Firestar Diamond Inc. Invoice No Page 4 01/10/ Preparation Work on tax return and adjusting journal entries. Perley, Sr 4.00 $ /10/ Preparation Continue work on preparation of federal returns. Kaiser 7.50 $ , /10/ Preparation Work on federal and state returns. Cook, T 1.20 $ /11/ Preparation Work on tax return matters related to Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Form 5472) and IRC Section 263A. Scarborough 2.65 $ , /11/ Preparation Review federal tax return, workpapers and changes to various workpapers for Fantasy, Inc. 01/12/ Preparation Review federal tax return, workpapers and changes to various workpapers - Fantasy Chesser 6.00 $ , /12/ Preparation Review federal tax return, workpapers and changes to various workpapers for Fantasy, Inc. Cook, T 3.00 $ /13/ Preparation Work on tax return matters related to Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Form 5472) and IRC Section 263A. Scarborough 2.65 $ , /13/ Preparation Review federal tax return and workpapers; prepare various workpapers for Firestar Diamond, Inc. Chesser 5.00 $ , /13/ Preparation Prepare tax return for federal consoldiated filing; clear diagnostics for Firestar Diamond, Inc. Chesser 5.00 $ , /13/ Preparation Update tax return for e-filing; Clear diagnostics for Fantasy, Inc. Chesser 4.00 $

13 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit A Whitley Penn LLP Pg 6 of 7 Firestar Diamond Inc. Invoice No Page 5 01/13/ Preparation Review federal and states. Cook, T 4.20 $ , /14/ Preparation Review federal and state returns. Scarborough 1.15 $ /14/2019 State Corporation Prep Review state returns. Scarborough 5.75 $ , /14/ Preparation Review state tax return and workpapers; Prepare various workpapers for Firestar Diamond, Inc. Chesser 6.00 $ , /14/ Preparation Prepare tax return for state consoldiated filing; Clear diagnostics for Firestar Diamond, Inc. Chesser 6.00 $ , /14/ Preparation Clear review notes for Firestar Diamond, Inc. Chesser 3.00 $ /14/2019 State Corporation Prep Review Firestar Diamond, Inc. states. Cook, T 4.80 $ , /15/ Preparation Federal and states. Scarborough 4.00 $ , /15/ Preparation Clear final review notes, update and sign off on project workflow, clear e-file diagnostics and prepare various paper filed state returns Chesser 8.00 $ , /15/ Preparation Process, deliver, e-file, and mail certified federal and state returns. Miller, M 1.50 $ /15/ Preparation Sign tax returns. Scarborough 0.30 $ /15/2019 State Corporation Prep Review Firestar Diamond, Inc. states. Cook, T 1.80 $

14 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit A Whitley Penn LLP Pg 7 of 7 Firestar Diamond Inc. Invoice No Page 6 01/16/2019 State Corporation Prep NY state e-file issue. Scarborough 0.50 $ Technology Fee 11/16/2018 Tech Fee - State Corp-$60 Miller, M $ , Consulting - Tax 11/16/2018 Tax Consulting Review and changes to initial information request. Scarborough 0.75 $ /29/2018 Tax Consulting Work on tax reporting matters related to missing information. Scarborough 0.50 $ /07/2018 Tax Consulting Work on updated information request and correspondence with Marks Paneth and Alvarenz & Marsal related to the same. Scarborough 0.40 $ Client Expenses - AP 01/31/2019 Monthly Postage Expense Postage Miller,M Current Amount 36, Prior Balance as of 01/01/ Total Amount Due $ 36, Over 120 Balance 36, , Our office has moved, please update your records with our new address Late fees applied on past due balances DUE UPON RECEIPT Please include invoice number with remittance Remittance Address: 640 Taylor Street, Suite 2200 Fort Worth,Texas wpbilling@whitleypenn.com

15 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit B Pg 1 of 6 EXHIBIT B

16 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit B Pg 2 of 6 Pay Online: whitleypenn.com/makeapayment A. Jaffe, Inc. Attn: Richard Levin, Chapter 11 Trustee 919 3rd Ave New York, NY February 18, 2019 Invoice: Client: Professional services rendered through January 31, 2019: Corporate 11/14/ Preparation Begin work on tax return preparation and initial information request. Cook, T 0.50 $ $ /20/ Preparation Teleconference with law firm related to additional information needed to complete tax returns. Cook, T 0.25 $ /28/ Preparation Review of prior year tax returns and begin planning for tax return preparation. Scarborough 0.35 $ /14/ Preparation Work on tax return preparation, set up tax binder, import trial balance, add received workpapers to binder. 12/17/ Preparation Continue work on tax return and accounting matters. Scarborough 0.50 $ /17/ Preparation Prepare and update intercompany loan schdule. 12/18/ Preparation Work on tax return and related adjustments. Scarborough 1.50 $ /18/ Preparation Work on tax return, consolidating tax adjustments and IRC Section 263A calculation. Scarborough 0.75 $

17 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit B Whitley Penn LLP Pg 3 of 6 A. Jaffe, Inc. Invoice No Page 2 12/18/ Preparation Work on tax return, review debtor entity trial balance; Prepared open item questions. 12/18/ Preparation Teleconference with Gary, Alvarez & Marsal; Discussed remaining workpapers required to complete tax return. Chesser 1.50 $ /19/ Preparation Work on tax return reporting and state tax return allocations. Scarborough 0.70 $ /19/ Preparation Reviewed prior year forms Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Form 5472) filed; Research filing requirement for current year; Discussed filign with Brian Mitchell. 12/19/ Preparation Review Section IRC Section 263A calculation. 12/19/ Preparation Update tax binder with new workpapers and correspondance. Chesser 0.75 $ /27/ Preparation Going through client provided information; Created basics of tax return; Grouping trial balance accounts in accoutning software so a reconciliation to the tax return can be done; Beginning to input financial information into the tax return. Fumagalli 7.00 $ , /28/ Preparation Inputting financial information into the tax return, while reconciling to the financials in the accounting software Fumagalli 3.25 $ /29/ Preparation Inputting financial information into the tax return, while reconciling to the financials in the accounting software; Filing out the necessary schedule information into the tax return. Fumagalli 6.25 $ /30/ Preparation Tying out the tax return to the financials in the accounting software; Adjusted groupings in financial to more accurately match the tax return; Began to add fixed asset information into the tax return. Fumagalli 7.25 $ ,087.51

18 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit B Whitley Penn LLP Pg 4 of 6 A. Jaffe, Inc. Invoice No Page 3 12/31/ Preparation Finishing inputting fixed asset detail from 2016 tax return; Inputting detail for every 5472 form; Created IRC Section 263A adjustment to add to the accounting software. Fumagalli 9.00 $ , /02/ Preparation Work on accounting and tax matters. Work on tax return. Scarborough 1.25 $ /02/ Preparation Finishing IRC Section 263A adjustment; Created tax journal entries in the accounting software; Updating the tax return and reconciling with the finances in the accounting software; Going through the previous year's return to tie up any loose ends and schedule information that was not previously input. Fumagalli 4.50 $ /02/2019 State Corporation Prep Working on California, Florida, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, Pennsylvania, and Utah state corporation related returns; Setting up the returns and going through each state to tie out basic client information; Starting to create an apportionment calculation and related workpapers. Fumagalli 5.00 $ /02/ Preparation Work on the preparation and review of federal tax return. Cook, T 0.40 $ /03/2019 State Corporation Prep Finishing preparing the twelve (12) state corporation tax returns and inputting necessary apportionment information into the tax return. Fumagalli 5.00 $ /03/ Preparation Subsidiary reporting on consolidated return; Inputting information into the tax return. Fumagalli 0.25 $ /06/ Preparation Work on Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Form 5472) 5472 matters. Scarborough 0.70 $ /07/ Preparation Worked on retained earnings roll forward matters. Scarborough 0.85 $

19 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit B Whitley Penn LLP Pg 5 of 6 A. Jaffe, Inc. Invoice No Page 4 01/07/ Preparation Reviewed federal tax return and workpapers; Prepared various workpapers. Chesser 8.00 $ , /07/ Preparation Work on the preparation of the federal tax return. Cook, T 1.20 $ /08/ Preparation Review federal tax return and workpapers; Prepared various workpapers. Chesser 8.00 $ , /08/ Preparation Subsidiary reporting on consolidated return; Inputting information and reconciling to accounting software. Fumagalli 4.77 $ /08/2019 State Corporation Prep Subsidiary reporting on consolidated return. Adding and setting up new information for the subsidiary. Fumagalli 0.50 $ /08/ Preparation Work on the preparation of the federal tax return. Fumagalli 0.25 $ /08/ Preparation Preparation of federal tax return and review of workpapers. Cook, T 0.40 $ /08/ Preparation Preparation of federal tax return and review of workpapers. Cook, T 1.60 $ /09/ Preparation Work on U.S. Corporation Income Tax Return (Form 1120) and state returns. Scarborough 0.85 $ /09/2019 State Corporation Prep Clearing tax return and wokrpaper corrections given by the reviewer. Fumagalli 3.75 $ /09/ Preparation Review of federal and state returns. Cook, T 2.00 $ /10/ Preparation Reviewed and prepared consolidation workpapers; Researched general ledger for intercompany transactions. Chesser 2.50 $

20 shl Doc Filed 02/19/19 Entered 02/19/19 16:25:50 Exhibit B Whitley Penn LLP Pg 6 of 6 A. Jaffe, Inc. Invoice No Page 5 01/10/ Preparation Work on tax return matters related to Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S.Trade or Business (Form 5472) and IRC Section 263A. Scarborough 1.15 $ /10/ Preparation Subsidiary reporting on consolidated return; Reconciled information between the tax return and the accounting software. Fumagalli 5.20 $ /10/ Preparation Review of federal and state returns. Cook, T 0.80 $ /11/ Preparation Work on tax return matters. Scarborough 2.65 $ , /11/ Preparation Review federal tax return and workpapers; Prepared various workpapers. Chesser 5.00 $ , /11/ Preparation Working on subsidiary reporting on consolidated return; Working with the reviewer through questions regarding the tax return. Fumagalli 2.55 $ /11/ Preparation Working on consolidating the tax return; Consolidated all of the financials in the accounting software; Reconciliation of numbers between the accounting software and the tax return. Making adjustments as the process goes along. Fumagalli 4.25 $ /11/ Preparation Assist staff with tax return entry. Cook, T 0.25 $ /12/ Preparation Prepared tax return for consoldiated filing and clear diagnostics. Chesser 4.00 $ /12/ Preparation Updated tax return for e-filing and clear diagnostics. Chesser 4.00 $ /12/ Preparation Reviewed A. Jaffe, Inc. Cook, T 2.00 $ /13/ Preparation Reviewed federal and state returns. Scarborough 1.50 $