In re: JAF, Ltd.

Opinion

UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ) In re: ) Case No. 25bk13020 ) JAF, Ltd., ) Chapter 11 ) Debtor. ) Judge Timothy A. Barnes FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF ORDER AWARDING TO DANNY PAPAVASILIOU AND VELLIOS ACCOUNTING, ACCOUNTANT FOR DEBTOR, FOR ALLOWANCE AND PAYMENT OF FINAL COMPENSATION AND REIMBURSEMENT OF EXPENSES TOTAL FEES REQUESTED: $ 9,000.00 TOTAL COSTS REQUESTED: $ 0.00 TOTAL FEES REDUCED: $ 1,650.00 TOTAL COSTS REDUCED: $ 0.00 TOTAL FEES ALLOWED: $ 7,350.00 TOTAL COSTS ALLOWED: $ 0.00 TOTAL FEES AND COSTS ALLOWED: $7,350.00 The attached time and expense entries have been underlined to reflect disallowance in whole or in part. The basis for each disallowance is reflected by numerical notations that appear on the left of each underlined entry. The numerical notations correspond to the enumerated paragraphs below. (1) Improper Time Increments for Billing – TOTAL of disallowed amounts: $0 The court may impose a ten percent penalty for using improper time increments for billing. “Professional persons . . . cannot, in all honesty and reasonableness, charge their clients for increments in excess of one-tenth of an hour.” In re Wildman, 72 B.R. 700, 726 (Bankr. N.D. Ill. 1987) (Schmetterer, J.). This penalty will be imposed where time increments larger than one-tenth of an hour are being used. For example, applicants who bill time using quarter-hour increments risk the ten percent penalty. Despite the use of improper time increments for billing, the court has elected not to impose a penalty with respect to the affected time entries and as such, the time entries affected by improper increments are not highlighted in the attached time entries. (2) Duplication of Services – TOTAL of disallowed amounts: $1,650.00 The court denies the allowance of compensation for services that duplicate those of another professional or paraprofessional. See 11 U.S.C. § 330(a)(4)(A)(i). Reduction in fees is warranted if multiple attorneys from the same firm appear in court on a motion or argument or for a conference, unless counsel adequately demonstrates that each attorney present contributed in some meaningful way. In re Pettibone, 74 B.R. 293, 307 (Bankr. N.D. Ill. 1987) (Schmetterer, J.) (“A debtor’s estate should not bear the burden of duplication of services. If found in the record, such duplication shall be disallowed by the court as unnecessary.”). It is also an accepted principle that generally no more than one attorney may bill for time spent in an intra-office conference or meeting absent an adequate explanation. See In re Adventist Living Ctrs., Inc., 137 B.R. 701, 716 (Bankr. N.D. Ill. 1991) (Sonderby, J.); I” re Pettibone, 74 B.R. at 303; But see In re MEP Infrastructure Sols., Inc., 654 B.R. 922, 925 (Bankr. N.D. Ill. 2023) (Goldgar, J.) Gncorrectly citing In re Stainless Sales Corp., Case No. 17 B 3148, 2017 WL 2829675, at *2 (Bankr. N.D. II. June 27, 2017) (Barnes, J.) for the proposition that intra-office meetings between multiple lawyers are never compensable when Stainless cites to Pettibone for the foregoing—that an application must “adequately demonstrate[] that each attorney present contributed in some meaningful way” and thus satisfy 11 U.S.C. § 330(a)(3)(D) by demonstrating that the meeting 1s “necessary” or “beneficial” and must have taken a “reasonable amount of time.”’). As the overall majority of services in the attached time entries are attributed to Matt Garcia, the court denies the allowance of compensation for the attached time entries attributed to Danny Papavasihou for services also attributed to Matt Garcia without adequate demonstration that both professionals contributed in a meaningful way.

□□ > C 2 Dated: March 24, 2026 □□ - ‘Timothy A. Barnes, Judge United States Bankruptcy Court

Date Time spent by Time Spend by Describtion of Services Matt Garcia Danny Papavasiliou Download PDF statements, upload transactions into software, begin 9/4/2025 1.0 0.0 categorizing of transactions 9/5/2025 1.0 0.0 Continued catagorizing transactions 9/11/2025 1.0 0.0 Finished catagorizing transactions Phone call with client about BKY situation, what additional services are 9/12/2025 1.0 0.0 required beyond original scope of work; complete bank reconciliations 9/13/2025 1.0 (2) 1.0 Partner phone call with client to discuss transactins Initial Review of Form 425C, review questionnaire items and send email 9/18/2025 1.0 0.0 to client about responses to questionnaire 9/19/2025 1.0 0.0 Complete financial statement package Download PDF statements, upload transactions into software, begin 10/10/2025 1.0 0.0 categorizing of transactions Lengthy phone call with client and client's assistant on the Monthly Operating Report requirements, questionnaire items, first correspondence 10/14/2025 3.0 0.0 with law firm regarding aforementioned Monthly Operating Report Complete September transaction categorizations, bank reconciliations, 10/15/2025 2.0 0.0 financial statement package prep and delivery Prepared Form 425C beyond questionnaire items, send to client' 10/17/2025 1.0 0.0 assistant to review Receive feedback from client's assistant and law firm about changes needed; implement discussed changes and deliver final version of Form 10/20/2025 2.0 (2) 1.0 425C; Partner review and correspondence Download PDF statements, Upload transactions into software, begin 11/10/2025 1.0 0.0 categorizing transactions More transaction categorizations; phone call and email correspondence 11/11/2025 2.0 0.0 with client Throuough internal audit of year 2025 to identify what bill payments can and cannot continue during BKY process (guidance from law firm + 11/13/2025 3.0 (2) 0.5 Partner correspondence); Staff call with client regarding sales tax Completion of transaction categorizations, bank reconciliations, financial 11/14/2025 2.0 0.0 statement package 11/17/2025 1.0 0.0 425C data calculations and entry Phone call with client; client request details for 3-year projections for business; prior financial data export from software, formatting, discuss 11/20/2025 3.0 (2) 0.5 formulas with Partner; projection completion and delivery Download PDF statements, Upload transactions into software, begin categorizing transactions; prior year comparative analysis to look for year- 12/11/2025 2.0 0.0 over-year discrepancies in prep for FY 2025 books close Complete comparative analysis, complete transactions categorizations, 12/12/2025 2.0 0.0 complete bank reconciliations, complete financial statement prep Review previous 425C and enter and calculate data into new 425C; 12/18/2025 2.0 0.0 review trends in projection disrecpancies 12/19/2025 2.0 (2) 1.0 Partner correspondence with client; 425C delivery Download PDF statements, Upload transactions into software, begin 1/13/2026 2.0 0.0 categorizing transactions; Complete transactions categorizations, complete bank reconciliations, 1/14/2026 1.0 0.0 complete financial statement prep Review previous 425C and enter and calculate data into new 425C; 1/18/2026 1.0 0.0 review trends in projection disrecpancies 1/19/2026 2.0 (2) 1.0 Partner review; 425C delivery 1/25/2026 1.0 0.0 Begin 2025 tax prep Total Hours 43.0 5.0