Avaya retiree Robert Emberger filed with the U.S. Bankruptcy Court a motion to establish an official committee of salaried retirees.
The motion explains, “The official committee of Unsecured Creditors opines that the Committee’s professionals concluded that the methodology used by the Debtors to calculate the ASPP claims appears to be reasonable, appropriate and consistent with applicable law. At no time do they suggest that the methodology is fair and equitable to the Avaya Salaried Retirees.”
In addition, “The Committee in their response, acknowledge that taking a role to assist individual creditors (and by implication he sub-class of Avaya Salaried Retirees as a group) in prosecuting their claims against the Debtors estate ‘would present an inherent conflict of interest.’ In recognition of that inherent conflict of interest, request the Court designate an Official Committee of Avaya Salaried Retirees as a separate subclass of unsecured creditors and that separate counsel be appointed for the purpose of establishing whether Avaya’s valuation methodology Fairly and Equitably treats the sub-class of Avaya Salaried retirees….If Avaya could not commit to a 5-year moratorium, for example, Avaya Salary Retirees would be better off if OPEB were terminated in bankruptcy. At least retirees would get a partial recovery.”
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