From Coleman & Woodruff 1994 Rosen should choose his words more carefully.
"The debtor also must think carefully before opposing the appointment of an equity committee. While the debtor may not want the extra cost and difficulty of an equity committee, the debtor still owes a fiduciary duty to shareholders. An overly pessimistic statement by the debtor that it is insolvent, which would seriously impair the rights of shareholders to receive value under a plan, may violate that fiduciary duty and expose the debtor's officers and directors to lawsuits or other proceedings by shareholders."
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