Document #1057 - Trustee objection to EC
I took a look at document #1057 to see why the trustee objected to an equity committee being appointed.
It looks like there were two reason the trustee objected:
1: It is clear that in the order of priority, the common shares are not going to recover anything. In the filing the trustee made note of the low quotes on the unsecured debt, meaning the market does not expect a full recovery for those classes, which are higher in priority than the common shares.
2: The trustee objected to the committee requesting $75,000 per month, since it is expected that the common shares are not expected to recover anything unless the unsecured debt can be made whole, which are higher in the priority order for the bankruptcy classes, and which appears to be impossible.
Louis J. Desy Jr.
Document #1057 - Trustee objecting to equity committee being appointed:
www.kccllc.net/alpharestructuring/document/1533896151210000000000010
Document #1155 - Court order denying equity committee from being appointed:
www.kccllc.net/alpharestructuring/document/1533896151222000000000002