Creditor Wexford Spectrum Investors and Debello Investors (collectively, “Wexford”) filed with the U.S. Bankruptcy Court an expedited motion to appoint an official committee of equity security holders for the Adeptus Health case.
The motion explains, “It appears from all of the Debtors’ public statements that many of the Debtors are suffering from a temporary liquidity or cash flow crisis. However, Inc. – when viewed on a standalone basis – does not even appear to suffer from such a temporary crisis. Rather, by all indications, Inc. is a solvent company with significant equity value for its shareholders and, in fact, Inc. represented to the public and its shareholders that it had hundreds of millions of dollars of equity value even six months ago.”
In addition, “Under these circumstances, it is necessary and appropriate to appoint an equity committee to represent and protect the interests of Inc.’s public shareholders. And, it is clear that the interests of Inc.’s shareholders are in great need of protection. The DIP facility proposed by the Debtors would make Inc. subject to the DIP lender’s liens and superpriority claims even though Inc. receives no value or benefit from such facility. In addition, the proposed plan that is being pressed forward at lightning speed and locked in place by the proposed DIP financing would entirely eliminate the interests of Inc.’s public shareholders.”
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