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Peter L. Duncan (Cal. Bar No. 123308)PYLE SIMS DUNCAN & STEVENSONA Professional Corporation401 "B" Street, Suite 1500San Diego, California 92101Tel: (619) 687-5200Fax: (619) 687-5210Email: theresam@psdslaw.com

Attorneys for Secured Creditor Torrey Pines Bank

UNITED STATES BANKRUPTCY COURT

CENTRAL DISTRICT OF CALIFORNIA

In re

HDOS ENTERPRISES, a Californiacorporation,

Debtor.

))))))))))))

Case No. 2:14-BK-12028-NB

Chapter 11

OBJECTIONS TO PAYMENT OF FEESAND EXPENSES OF FTI CONSULTING

Judge: Hon. Neil BasonCourtroom: 1545

Secured creditor Torrey Pines Bank, a division of Western Alliance Bank ("Bank"), hereby

objects to the Statement of Professional Fees of FTI Consulting for February 19, 2014 through March

31, 2014 filed on April 28, 2014 as Docket no. 258 (the “Statement”).

I.

FACTS

Debtor filed the above-captioned Chapter 11 case by filing a voluntary petition for relief under

Chapter 11 of the U.S. Bankruptcy Code on February 3, 2014 (the "Petition Date"). Debtor continues

to operate its business and manage its properties as a debtor in possession pursuant to 11 U.S.C. §§ 1107

and 1108.

///

Case 2:14-bk-12028-NB Doc 260 Filed 05/02/14 Entered 05/02/14 14:05:17 Desc Main Document Page 1 of 6

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Bank holds a first-priority prepetition security interest in the Estate’s assets.

On or about March 26, 2014, Debtor filed its Motion for Order Establishing Interim Fee

Application and Expense Reimbursement Procedures [Docket no. 221] (“Motion”). The defined terms

of the Motion are incorporated herein by reference. The Motion provides for a procedure which allows

the payment of 80% of all fees incurred and 100% of all costs without prior Court review if no objection

to a Monthly Fee Application is filed. The first Monthly Fee Application may include the Initial Period,

which can be as long as 56 days.

On March 27, 2014, this Court entered its ORDER (SECOND) APPROVING USE OF CASH

COLLATERAL PURSUANT TO STIPULATION FOR INTERIM USE OF CASH COLLATERAL

[Docket no. 223] (“Cash Collateral Order”).

The Cash Collateral Order allows the use of cash collateral to pay the administrative expenses

of the Debtor in Possession and the OCC, including professional fees, through May 31, 2014 pursuant

to the budget set forth in Exhibit “A” to the Second Stipulation for Interim Use of Cash Collateral filed

on March 25, 2014 (“Cash Collateral Stipulation”) [Docket no. 219].

The Bank indicated that it will object to the Motion unless the parties enter into a stipulation on

the ground that the procedures in the Motion do not limit the professional fees to be paid to the amounts

allowed under the Cash Collateral Order.

On April 8, 2014, the Bank, the Debtor in Possession and the OCC entered into a stipulation

filed as Docket no. 239 (“Stipulation”). The Stipulation provided that “the Motion is deemed modified

to provide that the amounts to be paid to professionals during the period covered by the Cash Collateral

Order shall not exceed the amounts set forth for professional fees in Exhibit "A" to the Cash Collateral

Stipulation.”

On April 10, 2014, the Debtor in Possession submitted the Declaration of J. Bennett Friedman

indicating there was no opposition to the Motion. [Docket no. 240.] The Declaration acknowledged the

Stipulation and stated that the “These clarifications will be reflected in the Order Granting the Motion.”

Despite this statement, the terms of the Stipulation do not appear to be included in the Order granting

the Motion entered on April 18, 2014. [Docket no. 242.]

///

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II.

OBJECTIONS

A. The Fees Requested Do Not Comply with the Stipulation or the Cash Collateral Order.

The Statement seeks $96,956.58 for the period from February 17, 2014 to March 31, 2014.

These are sought to be paid in April, 2014. The Cash Collateral Order provides for payment of the

OCC’s financial advisor in the amount of $50,000 during April and a similar amount for May.

The Bank objects to the payment of these fees in excess of the amounts set forth in the Cash

Collateral Order. The Bank does not object to the payment of $50,000 of the fees during April and

$50,000 in May, provided no additional statement is submitted for payment in May.

Dated: May 2, 2014

PYLE SIMS DUNCAN & STEVENSONA Professional Corporation

By: /s/ Peter L. Duncan Peter L. DuncanAttorneys for Secured Creditor Torrey Pines Bank

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This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.

June 2012 F 9013-3.1.PROOF.SERVICE

PROOF OF SERVICE OF DOCUMENT I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is: 401 B Street, Suite 1500, San Diego, California 92101. A true and correct copy of the foregoing document entitled (specify): OBJECTIONS TO PAYMENT OF FEES AND EXPENSES OF FTI CONSULTING _____________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ will be served or was served (a) on the judge in chambers in the form and manner required by LBR 5005-2(d); and (b) in the manner stated below: 1. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Pursuant to controlling General Orders and LBR, the foregoing document will be served by the court via NEF and hyperlink to the document. On (date) May 2, 2014, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following persons are on the Electronic Mail Notice List to receive NEF transmission at the email addresses stated below: Service information continued on attached page 2. SERVED BY UNITED STATES MAIL: On (date) May 2, 2014, I served the following persons and/or entities at the last known addresses in this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States mail, first class, postage prepaid, and addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed. Service information continued on attached page 3. SERVED BY PERSONAL DELIVERY, OVERNIGHT MAIL, FACSIMILE TRANSMISSION OR EMAIL (state method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on (date) May 2, 2014, I served the following persons and/or entities by personal delivery, overnight mail service, or (for those who consented in writing to such service method), by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on, or overnight mail to, the judge will be completed no later than 24 hours after the document is filed. Via Federal Express: Hon. Neil W. Bason United States Bankruptcy Court Central District of California Edward R. Roybal Federal Building and Courthouse 255 E. Temple Street, Suite 1552 / Courtroom 1545 Los Angeles, CA 90012 Service information continued on attached page I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct. May 2, 2014 Theresa A. Moser /s/ Theresa A. Moser Date Printed Name Signature

Case 2:14-bk-12028-NB Doc 260 Filed 05/02/14 Entered 05/02/14 14:05:17 Desc Main Document Page 4 of 6

This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.

June 2012 F 9013-3.1.PROOF.SERVICE

1. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF):

Michael Avanesian michaelavanesian@tilemlaw.com, michaelavanesian@ecf.inforuptcy.com;malissamurguia@tilemlaw.com;dianachau@tilemlaw.com;joanfidelson@tilemlaw.com

Lindsey F Baker lbaker@fbtlaw.com Dustin P Branch dustin.branch@kattenlaw.com,

jessica.mickelsen@kattenlaw.com;brian.huben@kattenlaw.com;adelle.shafer@kattenlaw.com;donna.carolo@kattenlaw.com

Jeffrey W Broker jbroker@brokerlaw.biz John P Byrne John.Byrne@byrnelaw.biz Jeffrey W Dulberg jdulberg@pszjlaw.com Peter L Duncan peterd@psdslaw.com, theresam@psdslaw.com Jerome Bennett Friedman jfriedman@flg-law.com, msobkowiak@flg-law.com;jmartinez@flg-

law.com;sbiegenzahn@flg-law.com;rfranzoia@flg-law.com Todd R Gabriel tgabriel@sparberlaw.com Ronald E Gold rgold@fbtlaw.com Christopher V Hawkins Hawkins@sullivanhill.com,

bkstaff@sullivanhill.com;vidovich@ecf.inforuptcy.com;hawkins@ecf.inforuptcy.com Joan Huh joan.huh@boe.ca.gov Dare Law dare.law@usdoj.gov, alvin.p.mar@usdoj.gov;hatty.yip@usdoj.gov Lori A Lewis lewisl004@mail.maricopa.gov Michael Y Lo michaellolaw@yahoo.com, bklolaw@gmail.com Scotta E McFarland smcfarland@pszjlaw.com, smcfarland@pszjlaw.com Thor D Mclaughlin tmclaughlin@allenmatkins.com, igold@allenmatkins.com Jessica Mickelsen jessica.mickelsen@kattenlaw.com,

adelle.shafer@kattenlaw.com;ecf.lax.docket@kattenlaw.com Kevin M Newman knewman@menterlaw.com, kmnbk@menterlaw.com Randy P Orlik rorlik@coxcastle.com Ernie Zachary Park ernie.park@bewleylaw.com Kristen N Pate ggpbk@ggp.com Jeffrey N Pomerantz jpomerantz@pszjlaw.com Peter J Rudinskas pjr.legal@gmail.com Aaron M Silver asilver@honigman.com Howard Steinberg steinbergh@gtlaw.com, laik@gtlaw.com;LALitDock@GTLAW.com Ronald M Tucker rtucker@simon.com, cmartin@simon.com;psummers@simon.com;Bankruptcy@simon.com United States Trustee (LA) ustpregion16.la.ecf@usdoj.gov Eric R Wilson kdwbankruptcydepartment@kelleydrye.com Rebecca J Winthrop rebecca.winthrop@nortonrosefulbright.com, darla.rodrigo@nortonrosefulbright.com

2. SERVED BY UNITED STATES MAIL: Debtor 

HDOS Enterprises 

5942 Priestly Drive  

Carlsbad, CA 92008 

  Debtor’s Counsel 

Friedman Law Group, P.C. 

Jerome Bennett Friedman  

1900 Ave of the Stars 11th Fl  

Los Angeles, CA 90067‐4409 

  Committee Member & RSN 

Simon Property Group, Inc. 

Ronald M. Tucker, VP Bankruptcy Counsel 

225 W. Washington Street 

Indianapolis, IN 46204 

Case 2:14-bk-12028-NB Doc 260 Filed 05/02/14 Entered 05/02/14 14:05:17 Desc Main Document Page 5 of 6

This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.

June 2012 F 9013-3.1.PROOF.SERVICE

Committee Member 

Hansen Distribution Group 

c/o John R. Haynes Loevenguth, Consultant 

Schulze, Haynes Loevenguth & Co. 

4340 Von Karmen Ave., Suite 110 

Newport Beach, CA 92660 

  Committee Member 

GGP Limited Partnership 

c/o Julie Minnick Bowden, Manager National 

Bankruptcy 

110 N. Wacker Drive 

Chicago, IL 60606 

   

 

 

 

 

Hot Dog on a Stick Employee Ownership Trust 

c/o Nicholas Saakvitne 

532 Colorado Ave. 

Santa Monica, CA 90401 

   

 

  Employment Development Dept. 

Bankruptcy Group MIC 92E 

P.O. Box 826880 

Sacramento, CA 94280‐0001 

Franchise Tax Board 

Bankruptcy Section, MS:A‐340 

P.O. Box 2952 

Sacramento, CA 95812‐2952 

  FTI Consulting 

Cynthia Nelson 

633 West 5th Street 

Suite 1600 

Los Angeles, CA 90071 

  RSN 

Paul M Weiser 

16435 N Scottsdale Rd, Ste 440 

Scottsdale, AZ 85254‐1754 

RSN 

GGP Limited Partnership, as Agent  

Kristen N. Pate  

110 N. Wacker Drive  

Chicago, IL 60606 

  RSN 

Rouse Properties Inc. 

Robert L. LeHane, Esq. 

Kelley Drye & Warren LLP 

101 Park Avenue 

New York, NY 10178 

  RSN 

ER Metro, Inc. 

BUCHALTER NEMER 

Paul M. Weiser 

16435 North Scottsdale Road 

Suite 440 RSN 

Counsel for Landlord Creditors The Macerich Company, Westfield, LLC and Plaza West Covina LP 

Dustin P. Branch  

KATTEN MUCHIN ROSENMAN LLP 2029 Century Park East, Suite 2600 

Los Angeles, CA 90067‐3012 

  RSN 

Robert L. LeHane, Esq. 

Kelley Drye & Warren LLP 

101 Park Avenue 

New York, New York 10178 

  RSN 

CAPREF Lloyd Center LLC 

Rebecca J. Winthrop 

Fulbright & Jaworski LLP 

555 S. Flower Street, 41st Floor 

Los Angeles, CA 90071 

RSN 

CAPREF Lloyd Center LLC 

Anna F. Patras 

Patras Williams LLC 

14 Countryside Lane, Suite 100 

Ringwood, NJ 07456 

  RSN 

Terramar Retail Centers LLC 

Todd R. Gabriel, Esq. 

Sparber Annen Morris & Gabriel APLC 

501 West Broadway, Suite 1720 

San Diego, CA 92101‐3555 

   

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