Performance Sports Group’s official committee of equity security holders filed with the U.S. Bankruptcy Court an objection to Plumbers & Pipefitters National Pension Fund’s cross-motion for application of Bankruptcy Rule 7023 to Proof of Claim No. 444 (Putative Class Claim).
The equity committee asserts, “Despite the rhetoric in the Putative Class’ recently-filed pleadings, disallowance of the contingent and unliquidated Putative Class Claim turns on uncontroverted legal principles and the application of those legal principles to uncontroverted facts. First (as the Putative Class concedes), there is no inherent right to file a class proof of claim in a U.S. (or Canadian) bankruptcy proceeding. Second (as the Putative Class also concedes), the decision regarding whether to permit the filing of a class proof of claim is left to the sound discretion of the Bankruptcy Court.”
In addition, “Where, as here, proceeding with a putative class proof of claim would not benefit the estates, but rather would materially impede implementation of and distributions under a Chapter 11 plan, the Bankruptcy Court should exercise its discretion and disallow the putative class claim….Moreover, no request for class certification appears to be forthcoming, likely because the Putative Class is nowhere near being able to carry its substantial burden respecting class certification. Nor did the Putative Class file a motion seeking leave to file the Putative Class Claim prior to the Bar Date or timely nunc pro tunc relief after the Bar Date….The Official Equity Committee is a fiduciary of the Chapter 11 estates and advocates for the interests of all present equity holders.”
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