Quigley asks judge to deny tort victim's request to appoint a trustee

By Reshmi Basu

New York, June 8 - Quigley Co. Inc. asked a judge to reject a request by the informal committee of tort victims to appoint a trustee for the company's Chapter 11 case, arguing that the committee has engaged in an obstructive strategy to derail the case from the beginning and that "enough is enough," according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

On May 2, the committee asked the court to appoint a trustee, contending that an independent entity must be brought in to look after the interests of all creditors, not just those chosen by Quigley's parent Pfizer Inc. The committee also argued that Pfizer has demonstrated an unwillingness to move the case toward a resolution, or even discuss what it would take to reach a compromise.

According to Friday's motion, Quigley rejected the committee's claim that it and Pfizer have sought to delay the conclusion of the case. Instead, Quigley maintains that whenever the company took steps toward some sort of resolution, the committee put up roadblocks by engaging in unnecessary litigation, which resulted in setbacks.

"In fact, Quigley and Pfizer have consistently sought a prompt resolution by building a consensus among the major constituencies, in order to avoid expensive, tine-consuming, and unnecessary litigation," according to the motion.

In addition, Quigley noted that at this stage, an appointment of a trustee would translate into more expenses and further delays.

A trustee would also harm creditors because it potentially could jeopardize their ability to recover losses and overturn the progress made so far, Quigley said in the motion.

"Were a trustee appointed, Pfizer would no longer be bound either to its substantial contribution ($700 million of value) to the asbestos PI [personal injury] trust or payment of the remaining 50% due under Pfizer claimant settlement agreements," said Quigley.

There is also no assurance that the settlement agreement "would remain intact, potentially undermining the overwhelming consensus in this case."

Moreover, Quigley rejected the committee's claim that it has not yet presented a "confirmable plan." Instead the company noted that even the committee has recognized that "this case is complex - and solutions to complex situations require time and effort."

The call for a trustee is the committee's "latest effort to disrupt the consensual accord reached by Quigley, Pfizer, and the vast majority of Quigley's creditors," the company said in the motion.

Quigley, a unit of Pfizer, filed for bankruptcy on Sept. 3, 2004. Its Chapter 11 case number is 04-15739.

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