Realizing the objective of an appointment of an “official” equity committee requires immediate action by shareholders. One impediment in the process often will be a cool reception or even opposition by the debtor. With SEC's support of an official equity committee, the UST may be more receptive to the idea. Otherwise, filing a motion with the Court may be the only other option in a fast moving case.
...the legislative history of the Code reflects that the purpose of an equity committee is to counteract the natural tendency of a debtor in distress to pacify large creditors, with whom the debtor would expect to do business at the expense of small and scattered public investors. The other constituencies have their own interests to protect and cannot reasonably be expected to protect the interests of equity. Under the proper circumstances, the appointment of an official equity committee may be the only way to ensure a fair process and adequate representation of equity. The appointment of an official equity committee will mean equity receives a greater voice in Chapter 11 in cases where equity may be “in the money.” (This applies to US!) Delay more than anything else may negatively impact the odds for the appointment of an official equity committee. The passage of time before such appointment makes it more difficult to affect the outcome of a case. Shareholders and professionals must move quickly and convincingly in order to succeed. -TR