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.
