Replies to post #35229 on Old Copper Co. Inc. (f/k/a CPPRQ/JCPNQ JC Penney)

[TraderAI]

Equity may be flushed. Could also be dismissed even if one is approved.

.0001 is better than zero, since JCP wants to start with zero (zilch) by disposing it all.

EC points to consider...Enough cash is available to certainly appoint an EC, JCP has revenue streams and 1.5B in cash.


"Ordinarily, an equity committee is composed of the seven largest equity security holders of the debtor that are willing to serve."

"To determine if an official equity committee is necessary, courts often consider: (i) whether the debtor is likely to prove solvent; (ii) whether equity is adequately represented by stakeholders already at the table; (iii) the complexity of the debtor’s case; (iv) the likely cost to the debtor’s estate of an equity committee; and (v) whether, given the existing constituencies in the case, the appointment of an official equity committee would add value to the case."

"The court in In re ATP Oil & Gas Corporation, Case No. 12-36187 [ECF No. 663] created an innovative process by ordering the United States Trustee to select five current equity holders to serve as members of an exploratory group to determine whether an equity security holders committee could be appointed in a manner that was economical and on a consensual basis. The group was to serve without compensation, would have no authority to bind any person or group, and the group could enter into preliminary negotiations with potential committee professionals, but could not bind any future committee."