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KB US HOLDINGS: Seeks to Hire Ankura as Restructuring Advisor

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KB US Holdings, Inc. and its debtor affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Ankura Consulting Group, LLC to provide chief restructuring officer, restructuring officer, and certain additional personnel.

The firm will render these professional services to the Debtors:

(a) Make M. Benjamin Jones available to serve as Chief Restructuring Officer of the Company and make Kasey Rosado available to serve as Restructuring Officer of the Debtors both upon approval by the Company’s Board of Directors;

(b) Oversee cash and liquidity management activities;

(c) Assist Management in the development and implementation of a communications plans for vendors, landlords, employees and other parties-in-interest, and where appropriate, assist in communications and negotiations with constituents involved in the chapter 11 proceedings;

(d) Oversee the administration and management of Debtors’ chapter 11 cases and provide services to assist the Debtors in the administration and management of chapter 11 cases;

(e) Assist Management and counsel in the developing and obtaining court approval for various motions, as necessary during the pendency of the case;

(f) If requested, testify on behalf of the Debtors to the extent requested by the Debtors’ counsel in connection with any bankruptcy or other court proceeding;

(g) Oversee the preparation of reporting required by the United States Bankruptcy Code;

(h) Participate in the formulation, development, negotiation and implementation of a reorganization plan;

(i) Assist Management with the Debtors’ asset sale and liquidation processes;

(j) In conjunction with Management, interface with the Debtors’ constituencies in the case and assist in the preparation of due diligence information, reports to and negotiations with such constituencies; and

(k) Oversee any required pre-consummation case wind-down activities.

(l) Assist Management with respect to various ad hoc financial analyses and financial modeling activities;

(m) Assist Management regarding responding to the information requests from the Debtors’ stakeholders and potential buyers;

(n) Assist Management in securing financing necessary to administer the case;

(o) Assist Management in obtaining court approval of any DIP financing facility and/or cash collateral order, as necessary; and

(p) Assist Management with respect to bankruptcy-related claims estimation, management and reconciliation processes.

Ankura’s services are intended to complement, and not duplicate, the services to be rendered by any other professionals retained by the Debtors in these chapter 11 cases.

Ankura Consulting will be paid the following non-refundable fees:

(a) Restructuring Officer Fee: A monthly fee, paid in advance each month, for the CRO and RO in the amount of $165,000.

(b) Additional Personnel Fee: For the Additional Personnel, fees based on the actual hours expended at hourly rates that are in effect when the services are rendered. Ankura’s hourly rates as of the effective date of the Engagement Letter are as follows:

Senior Managing Directors & Managing Directors $900 – $1,100
Senior Directors & Directors $610 – $870
Senior Associates & Associates $410 – $575
Paraprofessionals $275 – $330

In addition, Ankura will be reimbursed for the reasonable out-of-pocket expenses of its professionals incurred in connection with this assignment.

In the 90 days prior to the Commencement Date, Ankura received retainers and payments totaling $1,030,803.00 in the aggregate for services performed for the Debtors. Ankura has applied these funds to amounts due for services rendered and expenses incurred prior to the Commencement Date. The aggregate retainer as of the Commencement Date is estimated to total approximately $268,189.85.

M. Benjamin Jones, a senior managing director of Ankura Consulting Group, LLC, disclosed in court filings that the firm is a “disinterested person” as that term is defined in section 101(14) of the Bankruptcy Code.

The firms can be reached through:

M. Benjamin Jones
ANKURA CONSULTING GROUP, LLC
485 Lexington Avenue, 10th Floor
New York, NY 10017
Telephone: (212) 818-1555
Facsimile: (212) 818-1117
E-mail: ben.jones@ankura.com

About KB US Holdings

KB US Holdings, Inc. is the parent company of King Food Markets and Balducci’s Food Lover’s Market.

Headquartered in Parsippany, N.J., Kings Food Markets has been a specialty and gourmet food market across the East Coast. In 2009, Kings Food Markets acquired specialty gourmet retail grocer, Balducci’s Food Lover’s Market. As of the petition date, the Debtors operate 35 supermarkets across New York, New Jersey, Connecticut, Virginia, and Maryland.

KB US Holdings and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. N.Y. Lead Case No. 20-22962) on Aug. 23, 2020. The petitions were signed by Judith Spires, chief executive officer. At the time of the filing, Debtors disclosed assets of between $100 million and $500 million and liabilities of the same range.

Judge Sean H. Lane oversees the cases.

The Debtors tapped Proskauer Rose LLP as their legal counsel; PJ Solomon, L.P. and PJ Solomon Securities, LLC as investment banker; Ankura Consulting Group LLC as financial advisor; and Prime Clerk LLC as claims, noticing and solicitation agent.