UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

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:

In re: :

:

THE FINANCIAL OVERSIGHT AND : PROMESA

MANAGEMENT BOARD FOR PUERTO RICO, : Title III

:

as representative of : Case No. 17-BK-3283 (LTS)

:

THE COMMONWEALTH OF PUERTO RICO, et al., : (Jointly Administered)

:

Debtors.1:

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DECLARATION OF LUC A. DESPINS IN SUPPORT OF SECOND INTERIM 

FEE APPLICATION OF PAUL HASTINGS LLP, AS COUNSEL TO OFFICIAL 

COMMITTEE OF UNSECURED CREDITORS, FOR SERVICES RENDERED 

AND REIMBURSEMENT OF EXPENSES FOR PERIOD FROM OCTOBER 1, 2017

THROUGH JANUARY 31, 2018

Pursuant to Rule 2014(a) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy

Rules”), I, Luc A. Despins, declare that the following is true to the best of my knowledge, 

information, and belief:

1. I am an attorney admitted and in good standing to practice in the State of New 

York. I am a partner with the law firm of Paul Hastings LLP (“Paul Hastings”), located at, 

among other offices worldwide, 200 Park Avenue, New York, New York 10166, and am duly

authorized to make this Declaration on behalf of Paul Hastings. I make this Declaration in 

 

1 The Debtors in these title III cases, along with each Debtor’s respective title III case number listed as a 

bankruptcy case number due to software limitations and the last four (4) digits of each Debtor’s federal tax 

identification number, as applicable, are the (i) Commonwealth of Puerto Rico (Bankruptcy Case No. 17-BK3283 (LTS)) (Last Four Digits of Federal Tax ID: 3481), (ii) Employees Retirement System of the Government 

of the Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17-BK-3566(LTS)) (Last Four Digits of 

Federal Tax ID: 9686), (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case 

No. 17-BK-3567 (LTS)) (Last Four Digits of Federal Tax ID: 3808), (iv) Puerto Rico Sales Tax Financing 

Corporation (“COFINA”) (Bankruptcy Case No. 17-BK-3284 (LTS)) (Last Four Digits of Federal Tax ID: 

8474); and (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17-BK-4780) (Last 

Four Digits of Federal Tax ID: 3747).

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Declaration of Luc A. Despins in Support of Second Interim Fee Application of P Page 1 of 4
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support of the Second Interim Application of Paul Hastings LLP, Counsel to Official Committee 

of Unsecured Creditors, for Services Rendered and Reimbursement of Expenses for the Period 

from October 1, 2017 through January 31, 2018 (the “Application”).

2

2. The facts set forth in this Declaration are based upon my personal knowledge, 

discussions with other Paul Hastings attorneys, and the firm’s client/matter records that were 

reviewed by me or other Paul Hastings attorneys acting under my supervision and direction.

3. I hereby certify that I have read the Application and, to the best of my knowledge, 

information, and belief, formed after reasonable inquiry, (a) the compensation and 

reimbursement of expenses sought in the Application conform with the Bankruptcy Code, the 

Bankruptcy Rules, the U.S. Trustee Guidelines, and the Local Rules, and (b) the compensation 

and reimbursement of expenses are billed at rates no less favorable to the Debtors than those 

customarily employed by Paul Hastings generally.

4. Paul Hastings provides the following response to the request for information set 

forth in the U.S. Trustee Guidelines:

Question: Did you agree to any variations from, or alternatives to, your standard or 

customary billing rates, fees, or terms for services pertaining to this 

engagement that were provided during the Application Period?

Response: Yes. As a courtesy to the Committee and based on circumstances unique 

to the Title III Cases, during the Application Period, Paul Hastings agreed 

to the following voluntary reductions / write-offs:

Paul Hastings waived fees totaling $286,271.90, as follows:

(i) We reduced the hourly rate of G. Alexander Bongartz from 

$1,160.00 to $1,025.00, resulting in a reduction of $85,434.75 in 

fees; and

(ii) In January 2018, Paul Hastings increased its standard hourly rates 

to reflect (i) the current market for legal services, (ii) the rates 

 

2 Capitalized terms used but not defined herein have the meanings set forth in the Application.

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charged for comparable non-bankruptcy services, and (iii) our 

analysis of the hourly rates being charged by professionals in other 

law firms; however, Paul Hastings did not apply this rate increase 

to the fees charged in January 2018 with respect to the Committee 

engagement, resulting in a fee waiver in the aggregate amount of 

$200,837.15 . 

In addition, Paul Hastings waived expenses totaling $5,714.12, as follows: 

(i) We waived all charges with respect to late-work, in-office meals

(even though the Fee Examiner guidelines permit in-office meal 

charges of up to $20.00 per meal). At a $20.00 cap per meal, this 

translates into a total write-off of $1,582.67;

(ii) During this fee period, we capped out-of-office meal charges at 

$40 per person, resulting in a write-off of $50.75;

(iii) We capped car service charges at $100.00 resulting in a write-off 

of $364.19;

(iv) We reduced all lodging charges in San Juan, Puerto Rico to 

$250 per night (even though the Fee Examiner’s guidelines permit 

lodging charges in Puerto Rico of up to $300 per night), lodging 

charges in Boston, Massachusetts to $350 per night, and lodging 

charges in Washington, D.C., to $500 per night, resulting in a 

write-off of $283.26; and

(v) To comply with Local Rule 2016-1(b)(1), we reduced color 

photocopy charges by 50% from 50 cents per page to 25 cents per 

page (even though the Fee Examiner’s guidelines permit color 

photocopy charges of 50 cents per page), resulting in a write-off of 

$3,433.25.

The aggregate amount of the foregoing reductions/write-offs is $5,714.12.

Question: If the fees sought in this application as compared to the fees budgeted for 

the Application Period are higher by 10% or more, did you discuss the 

reasons for the variation with the client?

Response: The Fee Examiner waived the requirement to prepare a budget for the first 

three months of the Application Period. As a result, the Committee and 

Paul Hastings prepared a budget for only the January 2018 services. The 

January fees requested herein exceeded budget by 2.46% or $56,546.75.

Question: Have any of the professionals included in this application varied their 

hourly rate based on the geographic location of the bankruptcy case?

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Response: No.

Question: Does the application include time or fees related to reviewing or revising 

time records or preparing, reviewing, or revising invoices? (This is limited 

to work involved in preparing and editing billing records that would not be 

compensable outside of bankruptcy and does not include reasonable fees 

for preparing a fee application.) If so, please quantify by hours and fees.

Response: The Application includes approximately 150.2 hours and associated fees 

of approximately $130,514.00 related to preparing, reviewing, and 

revising Paul Hastings’ fee statements.

Question: Does this application include time or fees for reviewing time records to 

redact any privileged or other confidential information? If so, please 

quantify by hours and fees.

Response: No.

Question: If the application includes any rate increases since retention: (i) Did your 

client review and approve those rate increases in advance? (ii) Did your 

client agree when retaining the law firm to accept all future rates 

increases? If not, did you inform your client that they need not agree to 

modified rates or terms in order to have you continue the representation 

consistent with ABA Formal Ethics Opinion 11-458?

Response: Not applicable. 

5. I declare under penalty of perjury that, to the best of my knowledge and after 

reasonable inquiry, the foregoing is true and correct.

Executed this 19th day of March, 2018

/s/ Luc A. Despins 

Luc A. Despins

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