Common unit holders of EV Energy Partner filed with the U.S. Bankruptcy Court a motion to appoint an examiner pursuant to section 1104(c) of the bankruptcy code and bankruptcy rule 2007.
The motion explains, “Under the Plan, current EVEP equity is extinguished and in exchange given a five % New Equity Interest worth a fraction of EVEP equity’s true value. As proposed, the Plan gives holders of unsecured Senior Notes 95% of New Equity Interests. While this result may appear normal or even positive in other cases, here, the Debtors’ value has been grossly underreported and there are significant questions regarding prepetition, related party transfers that must be investigated. The Equity Holders submit that expediting the confirmation process, without allowing an independent investigation of the allegations herein would be improper.…Moreover, the U.S. Trustee has appointed no creditors or equity committee in these Cases, so there is no independent group that has investigated the transactions of EnerVest and EVEP, or other failures to disclose. Without this oversight, the Equity Holders submit that the need for truly independent oversight in these Cases is at its highest.”
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