EaglePicher creditors committee objects to financial adviser application

By Caroline Salls

Pittsburgh, May 18 - EaglePicher Holdings Inc.'s official committee of unsecured creditors objected to the company's request to hire Giuliani Capital Advisors LLC as financial adviser, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

The committee also said it reserves its right to object to the application to hire Houlihan, Lokey Howard & Zukin Capital for the same job.

The filing said EaglePicher also submitted an application to name Brookwood Associates as a third financial adviser.

The committee said the company has not explained why they need three advisers, each being paid "healthy monthly fees" of $420,000 per month.

"What is clear from the applications, however, is that [EaglePicher has] agreed to fee structures with each of the three proposed financial advisors that provide those firms with strong incentives to pursue liquidation, rather than reorganization, efforts," the committee said in the filing.

The committee said this is the most troubling factor, since it is very early on in a complex case.

EaglePicher, a Phoenix-based diversified manufacturer, filed for bankruptcy on April 11. Its Chapter 11 case number is 05-12601.

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