David’s Bridal – Oaktree, Courage Capital, AlbaCore and Deutsche Bank Want Evercore’s “Unreasonable, Non-Market” Fees Halved to $6.5mn

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December 14, 2018 – Oaktree Capital Management, Courage Capital Management,  AlbaCore Capital LLP, and Deutsche Bank AG Cayman Islands Branch (collectively, the “Objecting Parties”) objected to Evercore Group’s (“Evercore”) investment banking fees [Docket No. 181]. The Objecting Parties state, “The Objecting Parties do not object to the Debtors’ retention of Evercore or contest Evercore’s qualifications. Instead, the Objecting Parties object to the proposed fees to be paid to Evercore as excessive and unreasonable, and certain fee terms of the Engagement Letter do not conform to market precedents….The Objecting Parties submit that Evercore’s proposed compensation should be reduced in the following ways: (a) the Comprehensive Restructuring Fee should be reduced from 1.0% to 0.7% and calculated only on the aggregate amount of the Term Loans and the Unsecured Notes; and (b) the Financing Fees should be credited fully against the Comprehensive Restructuring Fee. Accordingly, the Objecting Parties propose that Evercore’s compensation be reduced from $13.065 million to $6.534 million ($5.259 million Comprehensive Restructuring Fee plus $1.275 million in Monthly Fees), which is still sizeable for a nine-month engagement.”

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