Here's the exact phrase from the K&E Doc. The UST (US Trustee) has objected to some fees, the CSF (company stock fund) wants a fee auditor (from what I gather, an actual company that audits), and K&E (representing CEM) is claiming the UST fee objection is unmerited, and that a fee auditor is unnecesary. K&E (and CEM) feel CEM has proper review functions in place; however, would be open to more transparency and communication. Here's the kicker from the K&E doc that MC thinks (right or wrong) reveals CEM intentions regarding the stockholder:
22. The Debtors disagree with the Company Stock Fund that equity security holders in these chapter 11 cases should be represented on any fee review committee were one to be appointed. In this regard, the Debtors note that this Court was first made aware that the U.S. Trustee was considering requests for the appointment of an equity committee at a hearing on July 28, 2009, and that the U.S. Trustee informed the Court that the requests were under consideration but that “no decision has been made.” See Transcript of Record at 46:4-8 and 66:1-10, In re Chemtura Corp., No. 09-11233 (Bankr. S.D.N.Y. July 28, 2009). It has been nearly two months since that hearing, and an equity committee has not been appointed. Neither the Company Stock Fund nor any other equity security holder has asked this Court to appoint an equity committee. While the Debtors do not wish to engage in a valuation dispute in the context of fee applications they simply observe that there is no finding or evidence that equity will have a right to any distribution in these chapter 11 cases. Accordingly, the Company Stock Fund can point to no basis for a right to representation on any formalized fee review committee.
My take is that CEM is stating that since and equity committee has not been formed, and since in bankrupcy proceedings there is no gaurantee for shareholder recovery, then why should CSF have a seat at the fee commitee? I can understand that from a business perspective, if you have no gauranteed rights, you should probably not have much of a say....
Now, things would be much different if there WAS a shareholder's commitee and CEM objected to its inclusion....
Thoughts?
AI
