Debtors hiding evidence from Centerbridge.
Moreover, efforts by the Equity Committee to expedite the process by facilitating the flow of relevant information from the Debtors to the Equity Committee have been met with resistance by the Debtors, further hampering the Equity Committee in its race against the clock.
Communications with the Debtors’ professionals show that they are taking a shield/sword approach to this case: they are using the expedited schedule both to shield their decision-making and to obstruct the Equity Committee from conducting appropriate and customary inquiries in any Chapter 11 case.
The Debtors, who should have nothing to hide if they have acted consistent with their fiduciary duties, are taking the position that no information should be shared outside of the litigation process. The Court should not sanction this approach.
On June 21, 2016, for example, the Debtors refused the Equity Committee’s request to permit direct discussions between the parties’ respective proposed financial advisors and the Debtors’ management without the presence of counsel so that the Equity Committee’s financial advisor could make a recommendation, among other things, as to whether the Debtors’ decision to liquidate was appropriate.
The Equity Committee offered to do so subject to Rule 408. Instead, the Debtors are requiring that counsel participate in each and every call and meeting, adding logistical complications and costs to what should be a straightforward two party conversation.
The Debtors have also refused to provide the Equity Committee with the ballots and voting reports they receive on a rolling basis and have denied the Equity Committee’s Case 16-11385-KJC Doc 124 Filed 06/22/16 Page 4 of 55 request that the plan voting deadline for equity security holders be extended due to the fact that many of the Debtors’ equity security holders had received the ballots only a few days ago.
Delaying the start of the Confirmation Hearing will not prejudice any party. Although the Restructuring Support Agreem
