USA Discounters committee eyes hiring counsel, financial adviser

By Mark Reccek

Bethlehem, Pa., Sept. 28 – USA Discounters Ltd.’s official committee of unsecured creditors requested court authorization to hire Kelley Drye & Warren LLP as lead counsel, Klehr Harrison Harvey Branzburg LLP as Delaware co-counsel and FTI Consulting, Inc. as financial adviser, all retroactive to Sept. 1, according to motions filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Kelley attorneys will be responsible for advising the committee with respect to its rights, powers and duties; assisting and advising the committee in its consultations with the debtor relative to the administration of the case; assisting the committee in analyzing the claims of the debtor’s creditors; assisting the committee’s investigation of the acts, conduct, assets, liabilities and financial condition of the debtor; assisting in the preparation of relevant legal documents; and appearing in court on behalf of the committee.

Klehr attorneys will also be responsible for providing legal advice regarding local rules, practices, precedents and procedure; reviewing, commenting and preparing drafts of documents; performing Delaware judgment and lien searches; preparing initial drafts of objections to the bid procedure motion and sale motion; and appearing in court, depositions and meetings with the U.S. trustee.

FTI representatives will be responsible for assisting in the review of financial disclosures; assisting in the preparation of the analysis to assess any use of cash collateral; assisting with the assessment of the company’s short-term cash flow, liquidity and operating results; assisting with the review of the company's core business assets and potential disposition or liquidation of non-core assets; assisting with the review of the company’s proposed key employee retention and other employee benefit programs; assisting with the review of the company’s cost benefit analysis regarding the affirmation or rejection of executor contracts and leases; assisting with the review and monitoring of the asset sale process; and assisting with the review of any tax issues.

Kelley attorneys and paralegals will be paid an hourly rate between $170 and $875.

Also, Klehr attorneys and paralegals will be paid an hourly rate between $180 and $575, while FTI representatives will be paid $75,000 on a fixed monthly basis for the first three months and $50,000 per month thereafter.

A hearing on the matter is scheduled for Oct. 16.

USA Discounters, a Norfolk, Va.-based retailer, filed for bankruptcy on Aug. 25. The Chapter 11 case number is 15-11755.

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