EC's can present problems for the exit plan if they can show that equity isn't being treated fairly.... it usually has to do with valuation - the company and debt holders want to present a lowball valuation so they can steal the entire post-BK assets while cleansing themselves of any liabilities.
It is usually the EC who presents the more accurate valuation thereby securing a place for equity in the final exit plan.
I was in 1 BK that after almost 2 years (with an EC) got common shareholders 5 year warrants based on a pro-rata basis.
Another BK from earlier this year (without an EC) exited in a matter of 6 or 7 months and commons received their pro-rata share of 9% of the newco. I exited before both of them were final.
Each and everyone is gonna be unique and its a gamble, but the odds are good until the disclosure statement lays out their intentions.....and even then the disclosure statement may have to be revised many many times as each version will have 1 or more groups out of the money.
Good synopsis, Dion. This process can go on a long time, with many twists and turns. A lot to fight over with a company this size. You are right about the lawyers, they have no risks, just all reward for them.
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