Local Rule 2016-2: Payment of Professional Fees in Chapter 11 Cases

L.R. 2016-2 – Payment of Professional Fees in Chapter 11 Cases. A. General Requirements in Chapter 11 Cases. The requirements of Rule 2016-1 of these Rules apply in chapter 11 cases.

B. Monthly Bills (Fee Statements) in Chapter 11 Cases. If debtor's counsel desires to receive compensation on a monthly basis prior to allowance on an interim application, counsel shall file a motion to establish procedures for interim compensation and reimbursement of expenses of professionals. At the time the motion is filed, a separate notice shall be filed allowing 14 days from the date of filing to file objections. The motion and notice shall be served on all interested parties, including, but not limited to, the debtor; the United States Trustee; the Trustee (if any); the Trustee's attorney (if any); and counsel for the unsecured creditors committee or, if counsel has not been appointed, to the unsecured creditors committee. If no committee has been appointed, service shall also be made to the twenty largest unsecured creditors.

All monthly payments of fees and expenses are subject to approval, modifications or disgorgement on interim application, which may not be filed sooner than every 120 days and not less frequently than every 180 days. In any case that has been pending more than 180 days, no professional shall be permitted to receive payment on a monthly bill or fee statement unless such professional has filed one or more interim fee applications covering all services provided more than 180 days before the date of such monthly bill or fee statement. Counsel may file a motion to extend this period.