They've officially gone over the edge - man oh man, that filing is unbelievable - enterprise value of $200 million?? Are you kidding me? EC needs to present their valuation analysis, otherwise this is going to be a freaking robbery.
I found it interesting that there is mention on page 4 that the unsecured may get less than 10%.
"Until then, every dollar that the Debtors continue to burn fighting with the Equity Committee is a dollar taken from the recoveries of the Debtors’ unsecured creditors, who are projected to receive a recovery of less than 10% on their claims under the Amended Plan."
I do not expect the equity committee will get disbanded just because they are asking questions or filing motions. The best way to 'get rid of the EC' is for the company to provide all the information and file everything as fast as possible.
I expect that if this goes on long enough, and the company starts to burn through the $25 million in cash they have, that another asset sale will be needed, resulting in more losses. I think it is now possible that the unsecured could end up with zero, and then even the secured holders (DIP and swap contract) will start to lose money.
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