Payment on Account to Professionals in Complex Chapter 11 Case

(a) Definition. “Payment on Account” means the amount of compensation for services rendered and reimbursement of expenses that the debtor in a case being administrated as a complex chapter 11 case under L.B.R. 1002-2 may provisionally pay to a professional employed under § 327 or § 1103 under subdivision (h) of this rule before the court approves payment of interim or final compensation and reimbursement for expenses under § 330 or § 331. (b) Frequency of Payment on Account. (1) Rolling 4 Month Maximum Period.

A professional employed under § 327 or § 1103 may file requests and accept Payment on Account for services rendered and reimbursement of expenses for a maximum period of 4 months. Except for the first and last month of the professional’s employment, a request must cover at least one month. (2) Calculating 4 Month Maximum Period. A month that counts toward a professional person’s 4 month maximum period under paragraph (1) is eliminated from the count upon the filing of an application for interim compensation for that month.

(c) Content of Request. A request for Payment on Account shall include (1) a list by name of each professional or paraprofessional, their billing rate, number of hours billed, and the total amount requested for the period; -23- (2) a general description of the services rendered during the period by the applicant in the categories of service listed in L.B.R. 2016-2 (e); and (3) a list of the type and amount of expenses for which reimbursement is requested. (d) Service of Request and Notice. On the day a request for Payment on Account is filed, the professional who made the request shall serve those listed on the Clerk’s Service List with (1) a copy of the request, and (2) a notice stating the date of the filing of the request and the requirement that any objection to the request must be filed and served on the professional who filed the request within 14 days of the date of the service of the request.

(e) Deadline to Object. An objection to the request for Payment on Account must be filed within 14 days of service of notice of the request. (f) Content of Objection. An objection to a request for Payment on Account shall identify the objector, state the basis of the objection, and identify the amount of the requested payment that is objected to and the amount that is not objected to.

(g) Certification of No Objection. If no timely objection is filed or if an objection is filed to the payment of a specific, limited amount of the requested Payment on Account, the professional who filed the request shall file a certification that no timely objection has been filed or that no timely objection has been filed to a specific amount. (h) Amount of Payment on Account. On receipt of a certification under subdivision (g) that no timely objection has been filed, or an objection has been filed only to the payment of a specific, limited amount of the requested compensation or expenses, the debtor may provisionally pay the professional: (1) the lesser of: (A) 80% of the requested compensation, or (B) 100% of the amount of the compensation that has not been objected to, and (2) 100% of the expenses requested that have not been objected to.

(i) Hearing Date on Objection and Notice of Hearing. Only the professional who files a request for Payment on Account may obtain a hearing date under L.B.R. 5070-1(a) for consideration of objections that have been timely filed to one or more requests. The professional shall give notice of the hearing to the objector and those listed on the Clerk’s Service List. (j) No Binding Effect.

A party who did not object to a request for Payment on Account may object to an application under L.B.R. 2016-2 for compensation and reimbursement for the same period. -24- (k) Return of Payment on Account. If the amount provisionally paid on account to a professional exceeds the amount of final compensation awarded by the court, the professional shall repay the excess amount to the debtor within 14 days of entry of the order allowing final compensation, unless the court fixes another date for the repayment.