Mangrove Partners Master Fund filed with the U.S. Bankruptcy Court a motion seeking the appointment of an official committee of equity security holders in the Peabody Energy case.
The motion explains, “It is critical that the equity holders of Peabody be given a fair opportunity to demonstrate that they are entitled to recover on their investments, before their interests are improperly wiped out entirely. Without an Equity Committee, the shareholders will have no means to preserve and realize the value that they believe exists in the Debtors.”
The motion continues, “Under these circumstances – where there is substantial evidence of value to the Peabody equity, and where the Debtors and creditors who stand to gain at the expense of equity have shut the equity holders out of plan negotiations – meaningful consideration of whether there is value to Peabody equity can only be achieved by appointment of an Equity Committee.”
In addition, “The Court has approved the payment of significant professional fees thus far, with the Debtors’ retained professionals already incurring over $23 million in fees and expenses for just the period of July through October 2016….The addition of an Equity Committee will add negligible additional burden when weighed against the size of the Debtors’ estate and the significant fees already being paid each month by the estate, while ensuring that the holders of Peabody equity receive fair representation.” The Court scheduled a January 26, 2017 hearing to consider the motion, with objections due by January 19, 2017.
Read more bankruptcy news.
The post Peabody Energy Equity Committee Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.