Quigley trustee objects to disclosure statement, claims Pfizer acting in its own best interests

By Reshmi Basu

New York, July 9 - Quigley Co., Inc.'s U.S. Trustee objected to the disclosure statement for the company's plan of reorganization, arguing that parent company Pfizer Inc. has not been playing fair and has only been acting in its own best interests, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the objection, the trustee contends that Pfizer has not been forthcoming with information in the statement while Quigley has "agreed to onerous terms that favor Pfizer and that are not in the best interests of the debtor's creditors."

In addition, the trustee argues that even though Pfizer has agreed to increase contributions under the most recent plan, the statement fails to explain why the contribution is reasonable and appropriate.

Moreover, the trustee also noted that while Pfizer did up its contributions to the asbestos personal injury trust, selfish motives underscored that move.

"It appears that this increased amount will only benefit the victims who previously reached an agreement with Pfizer.

"Non-settling asbestos victims will receive no more under the plan than was proposed under previous plans.

"If so, the scheme is a transparent attempt to increase the dollar amount to those who are already committed to voting in favor of the plan, in order to meet the "two-thirds"' requirement, according to the objection.

A hearing on approval of the disclosure statement is scheduled for July 12, and the plan confirmation hearing will begin on Oct. 11.

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

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