Case mcr Doc 753 Filed 11/17/16 Entered 11/17/16 16:26:25 Desc Main Document Page 1 of 7

Transcription

1 Main Document Page 1 of 7 UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF NEW YORK Hearing Date: December 8, 2016 Hearing Time: 10:00 a.m. Hearing Place: Syracuse, NY Objection Deadline: December 1, 2016 In re: Case No COYNE INTERNATIONAL ENTERPRISES CORP.,1 Chapter 7 Debtor. FIRST APPLICATION FOR ALLOWANCE OF INTERIM COMPENSATION BY DANNIBLE & MCKEE, LLP, AS ACCOUNTANTS FOR THE CHAPTER 7 TRUSTEE TO: THE HONORABLE MARGARET CANGILOS-RUIZ UNITED STATES BANKRUPTCY JUDGE: Dannible &McKee, LLP ("Dannible"), by Joseph A. Hardick, respectfully makes the following application (the "Application") to the United States Bankruptcy Court for the Northern District of New York (the "Court") for a first allowance of interim compensation for services rendered herein from June 20, 2016 through August 31, 2016: Dannible is an accounting firm with an office and place of business located at 221 South Warren Street, Syracuse, New York The undersigned has been licensed as a certified public accountant in the State of New York for over twenty (20) years and is a partner of Dannible. 2. Dannible makes this Application for a first allowance of interim compensation for professional services rendered in the amount of $26, incurred by Dannible while providing general accounting services to the Chapter 7 Trustee, William J. Leberman in the ~ The last four digits of the Debtor's federal tax identification number are /16/2016

2 Main Document Page 2 of 7 chapter 7 case herein. This Application covers the period of June 20, 2016 through August 31, 2016 (the "First Compensation Period"). GENERAL BACKGROUND On July 31, 2015 (the "Petition Date"), the debtor Coyne International Enterprises Corp. (the "Debtor") filed a voluntary petition for relief under chapter 11 of title 11 of United States Code, 101, et seq., as amended (the "Bankruptcy Code") in the United States Bankruptcy Court for the Northern District of New York (the "Court"). 4. During the Chapter 11 phase of this case, the Debtor sought approval from the Court for, and conducted a Section 363 sale of, it's operating business assets. Specifically, the Debtor sold its New Bedford, Massachusetts routes to Clean Rentals, Inc., its Richmond Virginia plant and Greenville, South Carolina routes to Prudential Overall Supply, Inc. and the routes associated with its remaining six operating plants to Cintas (the "Operating Assets Sales") 5. Following the closings concerning the Operating Assets Sales, the proceeds of sale were applied by the Debtor to, among other things, repay in full its indebtedness to its firstlien secured creditor, NXT Capital, LLC ("NXT"). After payment in full of the Debtor's indebtedness to NXT, Medley Opportunity Fund II LP ("Medley"), the Debtor's second-lien secured creditor, thereafter held afirst-position lien covering substantially all of the Debtor's Remaining Assets (as that term is defined below). 6. Also during the Chapter 11 phase of this case, the Debtor began the process of selling its remaining assets, including real estate, machinery and equipment (the "Remaining Assets"). While substantial steps toward selling the Remaining Assets were undertaken prior to conversion, the sales of the Remaining Assets were not completed before this case converted to /17/2016

3 Main Document Page 3 of 7 Chapter 7, and a significant effort was required of the Chapter 7 Trustee following the conversion to complete those sales. 7. By Order dated December 23, 2015 and effective as of February 26, 2016 (the "Conversion Date"), the Debtor's case was converted to a case administered under chapter 7 of the Bankruptcy Code. 8. On February 26, 2016, the United States Trustee for Region 2 (the "U.S. Trustee") issued the Notice of Appointment of Interim Trustee and Trustee Designation of Required Bond [Docket No. 625] appointing William J. Leberman as chapter 7 trustee in this case (the "Chapter 7 Trustee") 9. From the Conversion Date to the present time, the Chapter 7 Trustee's efforts have been focused on (a) administering the Chapter 7 Estate (the "Chapter 7 Estate"), (b) analyzing certain claims in this case, including tax claims arising from the Operating Assets Sales and sales of the Remaining Assets, (c) marshalling and conducting the sale of the Remaining Assets, and (d) beginning to investigate causes of action held by the Chapter 7 Estate. 10. On June 26, 2016, this Court entered an Order appointing Dannible as accountants to the Chapter 7 Trustee, effective as of June 20, 2016 [Docket 694]. Dannible did not receive a retainer in this case During the First Compensation Period, Dannible provided tax and general accounting services to the Chapter 7 Trustee, including all of those matters set forth below. SUMMARY OF SERVICES RENDERED BY DANNIBLE & MCKEE, LLP TO THE TRUSTEE DURING THE FIRST COMPENSATION PERIOD 12. During the First Compensation Period, Dannible expended considerable time and resources to provide the services for which it was retained and to accomplish the objectives as set forth in its retention application. Specifically, Dannible conducted research regarding filing /16/2016

4 Main Document Page 4 of 7 requirements and special tax rules for bankruptcy proceedings and advised the Chapter 7 Trustee concerning various tax and compliance issues. 13. In addition, Dannible reviewed the materials provided by the Chapter 7 Trustee that pertained to the Debtor's books and records and performed accounting on the Debtor's books and records. 14. Dannible also prepared trial balances, conducted an analysis of and prepared Schedule M-1 adjustments, and updated depreciation schedules to include gain loss information from the disposal of the Debtor's fixed assets. 15. Lastly, Dannible undertook the complex process of computing the projected liability of the Chapter 7 Estate for federal income taxes, as well as state income taxes, brought about as a result of the Operating Assets Sales and sales of the Remaining Assets, and advised the Chapter 7 Trustee concerning same. DISCUSSION 16. All of the services for which compensation is requested by Dannible were performed for or on behalf of the Chapter 7 Trustee, and not on behalf of any creditor, examiner, or any other entity. In addition, Dannible has not entered into any agreements to fix fees or to share compensation as prohibited by 18 U.S.C. 155 and 11 U.S.C As this Application demonstrates, the services that Dannible has rendered on behalf of the Chapter 7 Trustee have been beneficial to the Chapter 7 Estate in that the services have been utilized to assist the Chapter 7 Trustee in connection with the administration of the Chapter 7 Estate. 18. Dannible, in the ordinary course of its business, maintains computerized time and financial records. Attached to this Application as Exhibit "A" are the detailed time records of / 16/2016

5 Main Document Page 5 of 7 the actual services performed on behalf of the Chapter 7 Trustee during the First Compensation Period. 19. The following is a list of the professionals who performed services on behalf of the Chapter 7 Trustee in this case during the First Compensation Period, together with regular billing rates for each professional: Name Rate Minutes Total J. Hardick (Partner) $ ,920 $10, S. Forkin (Manager) $ ,045 $11, J. Witherel (Staff $ ,040 $5, GRAND TOTAL: 7,005 $26, The professional primarily responsible for providing services to the Chapter 7 Trustee in connection with this case is Joseph Hardick. Joseph Hardick is a certified public accountant and has over 30 years of experience in all areas of individual and corporate income tax preparation and planning. 20. Dannible notes that twelve factors are usually reviewed by the Court in calculating the fee due to professionals in bankruptcy cases: (1) the time and labor required; (2) the novelty and difficulty of issues; (3) the skill necessary to perform the services properly; (4) the preclusion of other employment; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations imposed by the client or circumstances; (8) the amounts involved and the results obtained; /16/2016

6 Main Document Page 6 of 7 (9) the experience, reputation and ability of the professional; (10) the undesirability of the case; (11) the nature and length of the professional relationship to the client; and (12) awards in similar cases. 21. In addition to the foregoing specified services, Dannible believes that it has performed further services which are not reflected on the time records. In cases composed of several separate ongoing matters such as these, it is impossible to record the detail of each letter, telephone call, conference time or research. Many such hours have been performed to date, but Dannible is not requesting compensation for same. 22. Dannible respectfully suggests that the fair and reasonable value of the services performed by it during the First Compensation Period is $26, No payment has been promised to Dannible in respect thereto. 23. Based upon the foregoing, Dannible respectfully requests that this Court issue an Order awarding and directing payment of Dannible's fees totaling $26, As discussed above, Dannible did not receive a retainer in connection with the services it provided to the Chapter 7 Trustee. As such, Dannible respectfully requests that it be compensated from the Chapter 7 Estate. Disbursements and Travel Expenses 24. Dannible is not seeking reimbursement for any out-of-pocket expenses incurred during the First Compensation Period /16/2016

7 Main Document Page 7 of 7 CONCLUSION 25. Based upon the foregoing, Dannible respectfully requests that the Court approve an interim allowance of professional compensation in the sum of $26, for services rendered to the Chapter 7 Trustee from June 20, 2016 to August 31, Estate. Order: 26. Dannible respectfully requests that the fees awarded be paid from the Chapter 7 WHEREFORE, Dannible &McKee, LLP respectfully requests that the Court enter an (a) approving and awarding a first interim allowance of fees to Dannible fox services rendered to the Chapter 7 Trustee during the period of June 2Q, 2016 to August 31, 2016 in the amount of $2f,598.75; (b) authorizing and directing that Dannible be paid the total amount of $2b, from the Chapter 7 Estate; and {c} granting such other and Further relief as this Court deems just and proper. Dated: November ~, 20 ~ 6 Syracuse, New Yflrk t ~ 1i.~"~~~ I: Joseph A. Hardick, CPA Financial Plaza 221 S. Warren Street Syracuse, Ne~v York Telephone: (315} Facsimile: (315) ~Iccountunts for the Chapter 7 Trustee !

8 Case mcr Doc Filed 11/17/16 Entered 11/17/16 16:26:25 Desc Exhibit A Page 1 of 3 EXHIBIT "A"

9 Dannible &McKee, LLP Detail T3~orksheet Report Date: Thursduy, September 1 S, 2016 WIP Detai[: June I, August 31, 2016 Billed Detail: June I, August 31, 2016 Case mcr Doc Filed 11/17/16 Entered 11/17/16 16:26:25 Desc Exhibit A Page 2 of Coyne International Enterprise Partner: HARDICK Manager: FORKIN Associate: WITHEREL * Billing Instructions: Coyne International Enterprise Time &Expenses Available to be billed Engagement Staff Date Rate Minutes Amount Review information required for engagement HARDICK 06/20/16 Time: /hr Conversation with William Leberman, additional information request HARDICK 06/21/16 Time: /hr Research regarding filing requirements and special tax rules for bankruptcy proceedings FORKIN 06/28/16 Time: /hr Research regarding filing requirements and special tax rules for bankruptcy proceedings FORKIN D7/21/16 Time: /hr Uploading information received HARDICK 07/18/16 Time: /hr Uploading information received FORKIN 07/19/16 Time: /hr Internal discussions regarding account data and information received FORKIN 07/20/16 Time: /hr Internal discussions regarding account data and information received HARDICK 07/20/16 Time: /hr Entering Trial Balance Accounts and file-set-up WITHEREL 07/20/16 Time: /hr Entering Trial Balance Accounts and file-set-up WITHEREI 07/21/16 Time: /hr Tax Account Grouping and file set-up FORKIN 07/22/16 Time: /hr Review and internal discussion on account data HARDICK 07/22/16 Time: /hr Tax Account Grouping WITHEREL 07/22/16 Time: /hr Review and internal discussion on account data HARDICK 07/25/16 Time: /hr Tax Account Grouping WITHERED 07/25/16 Tme: /hr , Tax Account Grouping WI7HERE~ 07/26/16 Time: /hr , Preparation of tax closing FORKIN 07/26/16 Time: /hr Preparation of tax closing FORKIN 07/27/16 Time: /hr , Preparation of tax closing WITHEREL 07/27/16 Time: /hr Preparation of tax closing HARDICK 07/27/ifi Time: /hr Analysis of Schedule M-1 Adjustments HARDICK 07/28/16 Time: /hr Analysis of Schedule M-1 Adjustments FORKIN 07/28/16 Time: /hr , Recording of adjustments and discussion FORKIN 07/29/16 Time: /hr Recording of adjustments and discussion HARDICK 07/29/16 Time: /hr Set-up of multiple state allocations WITNEREL 07/29/16 Time: /hr Analysis of multiple state allocations HARDICK 08/01/16 Time: /hr Updating of Depreciation Schedules including prior year accumulated depreciation and gain/loss on disposal of fixed assets. FORKIN 08/01/16 Time: /hr , Updating of Depreciation Schedules including prior year accumulated depreciation and gain/loss on disposal of fixed assets. FORKIN 08/02/16 Time: /hr Projection of estimated taxable income HARDICK 08/03/16 Time: /hr Projection of estimated taxable income HARDICK 08/04/16 Time: /hr , Projection of estimated taxable income FORKIN 08/04/16 Time: /hr Conversation with William Leberman and group with results of calculations FORKIN 08/22/16 Time: /hr Review and conversation with William Leberman and group with results of calculations HARDICK 08/23/16 Time: /hr , Revisions made to projections based on estimated of year end activity FORKIN 08/25/16 Time: /hr Results of tax calculations to William Leberman FORKIN 08/31/16 Time: /hr Results of tax calculations to William Leberman HARDICK 08/31/16 Time: /hr , File set-up for preparation of fiscal year tax returns FORKIN 08/09/16 Tme: /hr Request for additional information needed for preparation of tax returns FORKIN 08/29/16 Time: /hr Review of fle set-up and workpapers and information requests HARDICK 08/31/16 Time: /hr

10 Time &Expenses Available to be billed Date Rate Minutes Amount Coyne International Enterprise Staff Engagement Exhibit A Page 3 of 3 Client Coyne International Enterprise Totals 7, ,598.75Case mcr Doc Filed 11/17/16 Entered 11/17/16 16:26:25 Desc

11 Case mcr Doc Filed 11/17/16 Entered 11/17/16 16:26:25 Desc Cover Sheet Page 1 of 1 UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF NEW YORK In re: Case No COYNE INTERNATIONAL ENTERPRISES CORP. ~ Chapter 7 Debtor. SUMMARY AND COVER SHEET TO THE FIRST APPLICATION FOR ALLOWANCE OF INTERIM COMPENSATION BY DANNIBLE & MCKEE, LLP AS ACCOUNTANTS TO THE CHAPTER 7 TRUSTEE 1. Name and Capacity of Applicant: Dannible &McKee, LLP, as Accountants for the Chapter 7 Trustee 2. Filing Date: 3. Date of Conversion: 4. Date of Applicant's Appointment: 5. Period of Employment for First Application Period 6. Time Records: 7. Retainer: July 31, 2015 February 26, 2016 June 24, 2016 (effective as of 6/20/16) June 20, 2016 August 31, 2016 Attached as Exhibit "A" to Application None 8. Total Compensation and Expenses Requested for period 2/26/ /31 /2016): Fees: Expenses: Total: 9. Total Compensation and Expenses Previously Awarded: $26, $ 0.00 $26, E~ Name and Billing Rates J. Hardick (Partner) S. Forkin (Manager) J. Witherel (Staff $ $ $ ~ The last four digits of the Debtor's federal tax identification number are