Genco request for equity committee disbandment draws trustee objection

By Kali Hays

New York, June 13 – Genco Shipping & Trading Ltd.’s U.S. Trustee William K. Harrington objected to the company’s request that its appointed official committee of equity holders be disbanded or that the expenses the committee incurs be limited, according to a June 13 filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Genco claims that equity holders are capable of representing their interests without a committee and said that the three members of the committee, OZ Domestic Partners, LP, Aurelius Capital Management, LP and Mohawk Capital LLC, are "bankruptcy-savvy" investment funds that had retained experienced bankruptcy counsel by the time of Genco's first day motions.

The company also said that its independently controlled board of directors elected by shareholders "has represented and continues to represent the interests of equity."

Harrington said he deemed the appointment of the committee appropriate for the case and that budgetary restrictions beyond the already governing cash collateral order would infringe “unduly upon the equity committee’s ability to fulfill its statutory mandate,” according to the objection.

A hearing is scheduled for June 24.

Genco, a New York-based transporter of iron ore, coal, grain, steel products and other drybulk cargoes, filed for bankruptcy on April 21. The Chapter 11 case number is 14-11108.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.