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Karmaloop committee allowed to hire joint counsel, financial adviser
By Kali Hays
New York, April 29 – Karmaloop, Inc.’s official committee of unsecured creditors received authorization to hire Lowenstein Sandler LLP and Young Conway Stargatt & Taylor, LLP as joint counsel and Emerald Capital Advisors as its financial adviser, according to separate Thursday orders from the U.S. Bankruptcy Court for the District of Delaware.
The hiring of Lowenstein and Young Conway is retroactive to April 1 and that of Emerald to April 3.
As previously reported, though Lowenstein will act as the committee’s lead counsel, it and Young Conway will both review and analyze any pleadings related to Karmaloop’s case, negotiate with the company and its creditors to maximize the value of the estate, investigate the company’s financial condition, consult with the committee regarding any proposed asset sale, financing or plan and represent the committee in court and meetings as necessary, according to the motions.
Lowenstein attorneys will be paid an hourly rate between $275 and $995, and Young Conway attorneys will receive an hourly rate between $445 and $695.
In its role as financial adviser, Emerald will review Karmaloop’s business plan, strategy and financial forecasts, evaluate any proposed financing, develop an appropriate capital structure for the company, assist the committee in its review of the company’s financial reports and advise it during negotiations with Karmaloop regarding any potential sale or merger, according to a motion.
Emerald advisers involved in the case will be paid an hourly rate between $200 and $600.
Karmaloop, a Boston-based cross-platform digital commerce and media property company specializing in the sale of global streetwear fashion and culture, filed for bankruptcy on March 24. The Chapter 11 case number is 15-10635.
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