The U.S. Trustee assigned to the ScripsAmerica case and the official committee of unsecured creditors filed with the U.S. Bankruptcy Court separate objections to the motion for disbandment of the official committee of unsecured creditors or, alternatively, removal of Ironridge Global Partners and Robert Schneiderman from the committee.
The Trustee asserts, “The Debtor’s motion to disband or remove the members from the Official Committee of Unsecured Creditors is without basis. Bankruptcy courts do not have statutory authority to disband or dispense with mandatory committees except in one instance, small business cases. Beyond that, section 1102(a) does not authorize a bankruptcy court to disband a committee appointed under section 1102(a)(1), and section 105(d) is no authority to contravene the specific and carefully crafted Code provisions governing the formation, modification, and oversight of official committees.”
The objection continues, “There has been no evidence presented that either Committee member breached any fiduciary duty that they owe to the unsecured creditors as a whole. Rather, there has only been speculation that they may do so in the future. Given the body of unsecured creditors in this case and under the facts and circumstances here, both creditors are qualified and adequately representative Committee members. Accordingly, the Committee should stand as constituted, and the Motion should be denied.”
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