Bankrupt School Specialty Says Equity Committee Not Needed

Law360, New York (May 14, 2013, 4:53 PM EDT) -- Educational supply company School Specialty Inc. on Monday objected to a bid by some of its shareholders to appoint an official committee of equity security holders, saying there’s no possibility that the investors will recover any funds.

School Specialty argued that its reorganization plan is based on its senior secured super-priority debtor-in-possession lenders taking equity in the reorganized company on account of a sizable portion of their claims.

Furthermore, the total amount of allowed claims in this action may be almost twice the value of the...
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