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2025-01-27 DIP Financing - Douglas Wilson Co Reimburs (rec 2025-02-03)Case 24 -11647 -MFW Doc 337 Filed 01/27/25 Page 1 of 2 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: SilverRock Development Company, et al., Debtors.' Chapter 11 Case No. 24-11647 (MFW) (Jointly Administered) Objection Deadline: February 10, 2025 at 4:00 p.m. ET REPORT BY DOUGLAS WILSON COMPANIES OF COMPENSATION EARNED AND EXPENSES INCURRED FOR THE PERIOD OF DECEMBER 1, 2024 THROUGH DECEMBER 31, 2024 Exhibit A: CRO Summary of Hours by Professional Exhibit B: Summary of Compensation by Project Category and Summary of Hours by Professionals Douglas Wilson Companies ("DWC"), though counsel for the above -captioned Debtors, hereby submits this Fifth Monthly Report of Compensation Earned and Expenses Incurred (the "Report") for the period December 1, 2024 through December 31, 2024 incurred pursuant to its engagement [D.I. 109] (the "Retention Order"). DWC's fees for this period are $62,177.50. DWC incurred $260.99 in expenses during the period. The fees are laid out in further detail both in the CRO Summary of Hours by Professionals, attached hereto as Exhibit A, and the Summary of Compensation by Project Category and Summary of Hours by Professionals, attached hereto as Exhibit B. Pursuant to the Retention Order, parties in interest may file an objection, if any, to this Report within fourteen (14) days from the filing of this Report. 'The Debtors in these chapter 11 cases, along with the last four digits of each Debtor's federal tax identification number, as applicable, are: SilverRock Development Company, LLC (5730), RGC PA 789, LLC (5996), SilverRock Lifestyle Residences, LLC (0721), SilverRock Lodging, LLC, (4493), SilverRock Luxury Residences, LLC (6598) and SilverRock Phase 1, LLC (2247). The location of the Debtors' principal place of business and the Debtors' mailing address is 343 Fourth Avenue, San Diego, CA 92101. Case 24 -11647 -MFW Doc 337-1 Filed 01/27/25 Page 1 of 3 Exhibit A Case 24 -11647 -MFW Doc 337-1 Filed 01/27/25 Page 3 of 3 14. Douglas Wilson Joe Corcoran Kristine Cuevas Michele Vives Rene Weidman Lisset Rocha Joseph Grosh Michael Wilson Monica Wilson Grand Total 41.50 4.00 8.50 66.00 12.30 8.90 1.00 1.30 4.10 147.60 Class Activity Case Administration Budgeting Business Operations Real Estate Status Reports Asset Analysis and Recovery Asset Disposition Grand Total 147.60 97.70 6.60 19.50 16.30 2.50 3.40 1.60 147.60 Meals Bank Fees Grand Total 240.99 20.00 260.99 Case 24 -11647 -MFW Doc 337-2 Filed 01/27/25 Page 2 of 15 Douglas Wilson Companies 1620 Fifth Avenue, Suite 400 San Diego, CA 92101 Phone: 619 641-1141 Fax: 619-641-1150 douglaswilson.com SilverRock Development Company 343 Fourth Ave San Diego, CA 92101 United States 10167: SilverRock Development Company Services 12/02/2024 MV Services for month ending December 31, 2024 Case Administration: Read final draft of CRO Order (.2) and Exclusivity Extension Motion. (.4) 0.60 Invoice #: 92938 Invoice Date: 01/10/2025 Due Date: 02/10/2025 $270.00 12/02/2024 MV Case Administration: Meeting with D Wilson regarding 0.50 Broker Team selection, DIP Financing with the City of La Quinta, and 4th interim DIP order. $225.00 12/02/2024 RW Budgeting: Revisions to City DIP budget and 4th interim 0.50 $187.50 budget. 12/02/2024 KC Case Administration: Participated in call with 0.50 $175.00 constituents (.3). Participated in internal meeting with DWC team and next steps (.2) 12/02/2024 MV Case Administration: Review issues with Bank accounts 0.20 $90.00 and confirm full funding. 12/02/2024 MV Budgeting: Review 4th Interim DIP Budget and make adjustments (.6) Review 4th Interim DIP Order and redline based on revised budget (.7). 1.30 $585.00 12/02/2024 MV Case Administration: Develop list for counsel of those 0.30 $135.00 preferred equity members that have agreed to the reconveyance. Page 1 of 14 Case 24 -11647 -MFW Doc 337-2 Filed 01/27/25 Page 4 of 15 Invoice #: 92938 - 10167: SilverRock Development Company - 01/10/2025 12/03/2024 MV Budgeting: Finalize DIP budget to send to City of La 2.00 $900.00 Quinta 12/03/2024 KC Case Administration: Send follow up email 0.50 - $175.00 correspondence to various entities re: setting up follow up meetings with brokers and DIP lenders (.5). 12/03/2024 JG Real Estate: Call with D.Wilson, M.Vives, & J. Corcoran to discuss model and make adjustments to cash flow through land sale option and interest only for the loan. 1.00 $275.00 12/03/2024 LR Business Operations: Update Quickbooks(.2), set up 0.50 $137.50 insurance payment (.1), forward confirmation (.1) 12/03/2024 KC Case Administration: Download requested documents to 0.20 $70.00 DWC server. 12/03/2024 DW Case Administration: Review documents in preparation 2.20 - $1,265.00 of hearing (.4). Attend the status court hearing (.2). Follow up internal meetings to review the latest version of the interim and updated budget (.6). Participate in the meeting with the City regarding the term sheet for the long term DIP loan (1). 12/03/2024 MV Case Administration: Meeting with the City of La 1.00 $450.00 Quinta and counsel regarding 4th interim DIP budget and order, and Full DIP lending loan agreement. 12/03/2024 MV Case Administration: Pre -Hearing meeting with 0.40 $180.00 Counsel. 12/03/2024 DW Real Estate: Call with J.Grosh and internal team to discuss land sale options and discuss proforma model. 1.00 - $575.00 12/03/2024 MV Real Estate: Call with team to discuss proforma model and cash flow on land options. 1.00 $450.00 12/04/2024 MV Case Administration: Call with Judge Sontchi regarding 0.40 - $180.00 updated DIP budget for City of La Quinta to discuss various costs that can be removed. 12/04/2024 MV Case Administration: Finalize 4th interim DIP Budget 0.50 $225.00 based on feed back from Judge Sontchi. (.2). Redline 4th interim DIP order (.3). 12/04/2024 MV Case Administration: Meeting with City of La Quinta, 0.80 - $360.00 Counsel and Judge Sontchi regarding DIP Budget. Page 3 of 14 Case 24 -11647 -MFW Doc 337-2 Filed 01/27/25 Page 6 of 15 Invoice #: 92938 - 10167: SilverRock Development Company - 01/10/2025 12/06/2024 MV Case Administration: Call with J. McMillen regarding 0.40 $180.00 RD Olson's contract and scope of work. (.3) Discussion regarding 4th Interim Draw (.1) 12/06/2024 MV Case Administration: Call with Judge Sontchi regarding 0.20 $90.00 RD Olson's contract. 12/06/2024 MV Budgeting: Update 4th interim budget for RD Olson's 0.80 $360.00 scope of work and 4th Draw request. (.5). Review updates with R Weidman (.3) 12/06/2024 RW Business Operations: Update 4th Draw Schedule and attach supporting invoices. Email to J. McMillin. 1.00 $375.00 12/06/2024 MV Case Administration: Call with appraiser regarding 0.70 $315.00 updating the appraisal (25 min). Email correspondence with Judge Sontchi, D Wilson and debtors counsel regarding same (15 min) 12/06/2024 RW Status Reports: Begin review of November Invoice [No Charge] 1.50 - $0.00 12/07/2024 RW Status Reports: Complete draft review of invoice [No Charge] 1.00 $0.00 12/09/2024 LR Business Operations: Reconcile bank account (.2) , pull 0.60 $165.00 November Financials (.1) , pull vendor disbursements and listing through 12.09.24 and forward to R. Weidman (.2) 12/09/2024 KC Case Administration: Participate in weekly meeting with constituents. 0.50 - $175.00 12/09/2024 RW Business Operations: Call with J.McMillen (.1). Email to 0.20 $75.00 J.McMillen list of vendors paid to date (.1) 12/09/2024 DW Case Administration: Weekly update Zoom with the stakeholders. Provide an update on the City DIP loan and the retention of the brokers (.5). Review documents on recent DIP term sheet and related matters including the milestones for the brokers (.6). Follow up internal discussions regarding the current capital stack and review the unsecured creditors and other immediate issues to focus on (.4). Call with debtors counsel regarding budget (.4) 1.90 $1,092.50 12/09/2024 MV Case Administration: Weekly Major Constituents Meeting (.5). Follow up meeting with debtors counsel, Judge Sontchi and D Wilson to discuss week's 1.10 $495.00 Page 5 of 14 Case 24 -11647 -MFW Doc 337-2 Filed 01/27/25 Page 8 of 15 Invoice #: 92938 - 10167: SilverRock Development Company - 01/10/2025 12/10/2024 DW Case Administration: Participate in the Hilco meeting 2.70 $1,552.50 with Judge Sontchi and others to evaluate their capabilities to oversee the marketing and sale of the project (.5). Coordinate and participate in a Zoom meeting with Utah City Partners to discuss their interest in the DIP facility and provide them access to the data room (.5). Verify the status of the discussions with La Quinta regarding their potential DIP and the specific terms (1). Monitor and respond to various emails (.7). 12/10/2024 JC Business Operations: DIP call with Utah City 0.50 $212.50 12/11/2024 LR Business Operations: Set up payments for processing 0.40 $110.00 and review online portal for Imperial Irrigation District reg. payment 12/11/2024 MV Case Administration: Call with construction site 1.00 $450.00 manager regarding contracts moving forward. (.8) Call with F Schuster regarding termination of consulting agreement (.2) 12/11/2024 MV Case Administration: Review and edit Motion for DIP 0.50 $225.00 Financing (2nd round) 12/11/2024 DW Case Administration: Participate in a Zoom meeting to review all of the key pending project issues and the priorities and timelines for each (1). Review the most recent DIP term sheet (.5). 1.50 - $862.50 12/11/2024 JC Asset Disposition: Call with J. Sain from JLL 0.30 $127.50 12/12/2024 MV Case Administration: Email to debtors counsel, D 0.20 $90.00 Wilson and Judge Sontchi regarding issues with general contractor and clean up scope of work. 12/12/2024 MV Case Administration: Review Cumming Group proposal 0.80 $360.00 and email redlines back to consultant for property condition report scope of work (.7). Email to Judge Sontchi for his review, approval and execution (.1). 12/12/2024 LR Business Operations: Review payments to be made with 2.40 - $660.00 R.Weidman (.3) Set up payments for processing, update Quickbooks, cut checks and prepare summary of payments (2.1) 12/12/2024 RW Business Operations: Discuss payments to be issued 0.30 $112.50 with L.Rocha. 12/12/2024 MV Case Administration: Review and redline several 1.50 - $675.00 Page 7 of 14 Case 24 -11647 -MFW Doc 337-2 Filed 01/27/25 Page 10 of 15 Invoice #: 92938 - 10167: SilverRock Development Company - 01/10/2025 the process and quickly as is practical (.2). Monitor various emails and respond as needed (.4). Review of the final DIP motion (.2). 12/16/2024 MV Case Administration: Weekly meeting with Major 0.50 $225.00 Constituents 12/16/2024 MV Asset Analysis and Recovery: Call with T. Gavin regarding appraisal and valuation assignment. 1.00 $450.00 12/16/2024 MV Case Administration: Update Will Serve letter. 0.50 $225.00 12/16/2024 MV Case Administration: Meetings with Debtors Counsel, D. Wilson, Judge Sontchi regarding, Status of Reconveyance; DIP Budget and City Loan; Pro Forma Review; Broker Engagement; and IID Status on Will Serve Letter. 3.00 $1,350.00 12/16/2024 MV Case Administration: Meeting with Debtors counsel, 0.80 - $360.00 Judge Sontchi and D. Wilson regarding Major Constituents issues with DIP Financing. 12/16/2024 DW Case Administration: Weekly call with all of the stakeholders in the project and provide updates on the DIP loan, the retention of JLL and the scope of the site work that will start in early January (.5) Meet at DWC's office with Judge Sontchi, DWC personnel and the debtors lawyers to discuss all aspects of the project and establish priorities and timelines going forward. Comprehensive review of the updated DIP budget and the list of secured lenders and the other classes of investors. (3). Meeting with Debtors Counsel, Judge Sontchi and M.Vives to discuss DIP financing issues (.8). Review the JLL retention documents and outline the most efficient way to resolve for the conflict waiver issues (1) 5.30 $3,047.50 12/16/2024 JC Case Administration: Major constituents discussion 0.50 - $212.50 12/17/2024 KC Case Administration: Download construction related 0.80 $280.00 documents from Debtor for Cost to Complete assignment. 12/17/2024 MV Case Administration: Travel to La Quinta for meetings with City and site tour with RD Olson, Judge Sontchi, Cumming Group and D Wilson [50%] 3.00 50.0% $675.00 12/17/2024 MV Case Administration: Travel from La Quinta to San Diego [50%] 3.00 50.0% $675.00 Page 9 of 14 Case 24 -11647 -MFW Doc 337-2 Filed 01/27/25 Page 12 of 15 Invoice #: 92938 - 10167: SilverRock Development Company - 01/10/2025 of all of the investor schedules and related documents to be used to illustrate value with the property (.4). Monitor various emails (.2). Coordinate remaining issues to get the JLL retention motion filed (.4). 12/19/2024 LR Business Operations: Review invoices and issue 0.50 $137.50 payments. Confirm wiring instructions with vendors. 12/20/2024 DW Case Administration: Zoom meeting with Utah Partners to discuss the status of the DIP loan and provide a general project update (1). Follow up discussions on the remaining issues to complete the JLL retention documents (.3). Monitor and respond to emails (.2). 1.50 $862.50 12/21/2024 RW Case Administration: Review November MOR reports 0.70 $262.50 and provide comments to team. 12/23/2024 KC Case Administration: Print and prepare legal documents 0.30 $105.00 for D. Wilson. 12/23/2024 KC Case Administration: Participate in weekly call with 0.40 $140.00 major constituents. 12/23/2024 DW Case Administration: Prepare for and participate in a 2.20 $1,265.00 Zoom meeting with Judge Sontchi and counsel to review the status of the DIP loan and the JLL application (1). Participate in the weekly Zoom meeting with all of the stakeholders (.4). Review the final JLL documents as well as the financial summary of all of the investors (.6). Monitor emails (.2). 12/23/2024 JC Case Administration: SilverRock major constituents call 0.40 $170.00 12/24/2024 DW Case Administration: Monitor emails and respond as 0.70 - $402.50 needed (.2). Review the status of the DIP loan objections and verify the remaining items to be reviewed on January 2nd (.5). 12/27/2024 MV Real Estate: Update to Creditors List (Secured and Disputed) based on feedback from counsel. (.8) Email correspondence with Debtor regarding recorded Mechanics Liens that appear to be duplicative. (.2) Update to Mechanics Liens analysis based new information received from Debtor (.5) 1.50 $675.00 12/27/2024 RW Case Administration: Updating October and November MOR's. 1.00 $375.00 12/27/2024 DW Case Administration: Internal meeting to review the 0.80 $460.00 Page 11 of 14 • Case 24 -11647 -MFW Doc 337-2 Filed 01/27/25 Page 14 of 15 Invoice #: 92938 - 10167: SilverRock Development Company - 01/10/2025 Expenses 12/17/2024 MV Line Item Discount Subtotal -$3,075.00 Services Subtotal $62,177.50 Meals: Lunch meeting with RD Olson, City of La Quinta, Judge Sontchi and CRO Team to discuss status of project prior to site walk. $210.43 $210.43 12/17/2024 MV Meals: Waters and Coffee on Trip for Site Walk and mtgs with City $17.36 $17.36 of La Quinta 12/17/2024 MV Meals: Coffees and water post site walk and mtgs with City of La Quinta $13.20 $13.20 12/18/2024 RW Bank Fees: ACCOUNT ANALYSIS FEES FOR 11/24 $20.00 $20.00 Joe Corcoran 4.0 $425.00 Expenses Subtotal $260.99 $1,700.00 Kristine Cuevas 8.5 $350.00 $2,975.00 Joseph Grosh 1.0 $275.00 $275.00 Lisset Rocha 8.9 $275.00 $2,447.50 Michele Vives 65.6 $450.00 -$1,350.00 $28,170.00 Michele Vives 0.4 $0.00 $0.00 Rene Weidman 8.8 $375.00 $3,300.00 Rene Weidman 3.5 $0.00 - $0.00 Douglas Wilson 41.5 $575.00 -$1,725.00 $22,137.50 Michael Wilson 1.3 $350.00 - $455.00 Monica Wilson 4.1 $175.00 $717.50 Subtotal $62,438.49 Page 13 of 14