Whenever there is a motion for direction of an appoint an equity committee in any case, there always be objections filed that state (or similar):
While the above is true as far as fiduciary duty of management, board of directors and Debtors, the problem is once under the umbrella of BK, who is in charge of guarding the hen house?
The problem is: the creditors committee (and/or ad hoc committees) is (are) "usually" made up of hedge funds who want the reorganized entity. Think: wolf guarding the hen house.
Quote below from the Order denying an appointment of an equity committee:
The entities could not prove there was any (or enough) equity to warrant an appointment of an equity committee and that Mr. Wu's "testimony was speculative at best and on most optimistic outlook imaginable..."
Not saying equity will or will NOT be thrown a bone, but if you take everything into account (and long this is dragging) and look at the big picture... I would say equity has a slim to none chance of getting any meaningful distribution...