In the recent decision in the In re FAH Liquidating (f/k/a Fisker Automotive Holdings), No. 13-13087 (KG) (Bankr. D. Del. Jan. 21, 2015), case, the court addressed whether professionals retained by the Official Committee of Unsecured Creditors were entitled to receive a fee enhancement in addition to their normal hourly rate. Fisker is by now well-known among practitioners, as it garnered significant attention last year when the court limited the rights of an assignee of a secured creditor to credit bid pursuant to Section 363(k) of the Bankruptcy Code.
In Fisker, the committee’s professionals sought in excess of 50 percent over and above their incurred professional fees as fee enhancements for their work in the case. While the court stated that it did not intend to “minimize its respect for the professionals’ work,” the court found that the requested fee enhancements, if allowed, would result in excessive compensation; as such, the court denied the request.
