Old Copper Co. Inc. (f/k/a CPPRQ/JCPNQ JC Penney)

[Ace 420]

Over the past week, we have reviewed the Debtors’ applications to employ Kirkland, AlixPartners, and Lazard (the “Debtor Professionals”) and the objections filed by the United States Trustee’s office. The UST has not taken the position that the Debtor Professionals’ connections to the Confidential Parties are sufficient to disqualify any of the Debtor Professionals from employment in these cases. The UST does not object to employment of any of the Debtor Professionals and the sole disputed issue is whether the Debtor Professionals will be required to publicly disclose the Confidential Parties and the Debtors Professionals’ relationships thereto.

The disclosure issue represents a continued disagreement between the UST’s office and the Bankruptcy Courts for the Southern District of Texas. The UST has taken the position that proposed estate professionals must publicly disclose all connections to a debtor or potential parties-in-interest in order to comply with the Bankruptcy Code.

The committee and it's professionals will be monitoring today's hearing. At this time we will not be taking a position on this matter. We might however bring these matters up at a later time if or when they become relevant.

Sincerely,

Niko Celentano

Chairman

JCP ad hoc committee

nikocelentano