Fibertower Corp fka FBBT

[CJ12]

Does anyone know why there was no equity committee appointed in this case?

Generally, the process for appointing an equity committee begins with an equityholder sending a letter requesting an official committee to the office of the U.S. Trustee, which serves as a watchdog over the bankruptcy process. The UST can decline, as section 1102(a)(1) of the Bankruptcy Code gives broad discretion to appoint or not appoint an equity committee “as the United States Trustee deems appropriate.”
Alternatively or if the UST denies the request, shareholders can ask the court to appoint an official equity committee under section 1102(a)(2) of the Bankruptcy Code if doing so would be “necessary to assure the adequate representation of … equity security holders.” The term “adequate representation,” however, is not defined under the Code.

Instead, when confronted with a request to appoint an official equity committee, bankruptcy courts across the nation typically consider four factors set forth under the 2009 Pilgrim’s Pride case from the Bankruptcy Court for the Northern District of Texas. Those factors are whether (i) the debtor is likely to prove solvent and there is a substantial likelihood of a meaningful distribution to equity, (ii) equity is not adequately represented by stakeholders already involved, (iii) the debtor’s case is complex, and (iv) the cost of an official equity committee is justified.

https://www.forbes.com/sites/maxfrumes/2016/10/14/the-equity-committee-trend-when-shareholders-of-a-bankrupt-company-hope-to-get-more-than-nothing/#15cedbfb56b2