Law360 (July 20, 2020, 10:54 PM EDT) -- Holders of stock in bankrupt tobacco supplier Pyxus International won a rare fight for the establishment of an equity committee on Monday, after a Delaware bankruptcy judge noted that the "debtors' own balance sheet raises questions."
U.S. Bankruptcy Judge Laurie Selber Silverstein approved the move after a day-long hearing on Friday during which independent stockholders said the company had provided no warning of insolvency and failed to fully explain why they will get nothing for their shares under the company's $1 billion reorganization.
"This is a prepackaged case, so all negotiations happened pre-bankruptcy without transparency," Judge Silverstein said. "Here the interests...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!