Equity Committees Take A Stand In Bankruptcy Court

Law360, New York (March 29, 2006, 12:00 AM EST) -- Since the shareholders won committee representation in the Calpine and Delphi bankruptcy proceedings, equity committees seem to be a growing presence in court.

Attorneys have noticed that in larger cases such as these, it is more common to find an equity committee, and that equity holders, typically at the bottom rung of creditors, are taking more assertive action to recover their investments.

“Over the last several years, some of these mega cases have potential for distribution to return to equity. If the potential is out there,...
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