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A U.S. Bankruptcy judge has denied an effort by Eastman Kodak Co. stockholders to have the court establish an official committee to represent the interests of equity security holders in the Chapter 11 case.
In a decision filed Thursday, Judge Allan Gropper denied the motion and sustained the decision of the United States Trustee not to appoint such a committee. Shareholders had filed multiple motions and sent numerous letters, he explained.
“After a thorough review of the record, including the evidence and testimony submitted by the parties at an August 5, 2013 hearing, the court finds that an equity committee is not necessary and that the costs of such a committee would be unreasonable in light of any possible benefits,” Gropper wrote in the decision and order.”
“There is no evidence that the debtor or creditors are hiding value or that an equity committee would be appropriate, much less ‘necessary’ in Kodak’s case,” Gropper explained.
Kodak, as part of its reorganization, proposes to eliminate all existing stock as part of its emergence from Chapter 11. That plan has not yet received court approval.
The company is slated to appear before the judge Tuesday to seek approval of its reorganization plan. The company filed for Chapter 11 in January 2012.
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