UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF KENTUCKY

PIKEVILLE DIVISION

IN RE:

ALMA ENERGY, LLC                                                                                    CASE NO. 07-70370

DEBTOR 

OPINION AND ORDER ALLOWING INTERIM FEE APPLICATION

           This matter is before the court upon an application for fees by counsel for debtor in possession in the within proceeding. Debtor originally filed a First Interim Fee Application (Doc. #198) on January 25, 2008. An Amended First Fee Application (Doc. #200) was filed on January 31, 2008. The United States Trustee filed an Objection to the Amended First Interim Fee Application (Doc. #223) on February 15, 2008 and a Response to the United States Trustee’s Objection to Amended First Interim Fee Application (Doc. #304) was filed herein on April 18, 2008. On April 21, 2008 an Amended First Interim Fee Application (Doc. #305) was filed and subsequently withdrawn on the same date (Doc. #307). Thereafter, on April 21, 2008, an Amended First Interim Fee Application (Doc. #308) was filed.

           The within application is an interim fee application and as such may be reviewed, and further objection heard, upon subsequent and final fee application in this matter. The sum and substance of the objections of the United States Trustee to the Amended First Interim Fee Application (Doc. #223) is the applicant’s alleged failure to comply with the terms of 11 U.S.C. §330 and the Guidelines of the United States Trustee in support thereof. The Amended Application appears to have cured many of the deficiencies recited by the United States Trustee in his Objection. To the extent that deficiencies remain, it appears to the court that sufficient detail is included in the application to allow the court to fairly evaluate the application for fees. First and foremost, the rate charged by counsel for the debtor in possession is $150 per hour which is, under the circumstances, a very modest hourly rate in consideration of the difficulty of the issues and the values of assets and amounts of debt involved in the proceeding. The record, in the proceedings held by the court, reflects consistent and persistent effort by the applicant in support of reorganizing the debtor in possession. The record also reflects, thus far, significant progress toward that end. The final results, however, remain to be seen and final fee applications will be considered in light of events yet to unfold in this proceeding. Because of the modest hourly rate charged, the court will not require any retention of a portion of the attorney’s fees up to this point as it normally does in Chapter 11 cases.

           IT IS THEREFORE ORDERED that the Application for Fees, as amended, filed by the attorney for the debtor in possession in this proceeding be, and it hereby is, ALLOWED in the amount of $83,041.50 plus expenses of $1,464.32, against which is credited and may be applied to the debt, the sum of $7,961.00 paid as a retainer, leaving a balance of $76,544.82 to be paid by debtor to applicant, which sum is allowed and ordered to be paid to the applicant.

COPIES TO: 

Paul Stewart Snyder, Esq.

United States Trustee