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Sirva creditors committee objects to separate committee appointment motion
By Caroline Salls
Pittsburgh, March 13 - Sirva Inc.'s official committee of unsecured creditors objected to Triple Net Investments IX, LP's motion to appoint a separate creditors committee to represent holders of class 5 other general unsecured claims, arguing that the class 5 creditors are already well represented, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.
According to the objection, Triple Net has disagreed with the committee's choice to negotiate settlements to resolve oppositions to two Siva motions.
However, the committee said both of the settlements provided substantial benefits to class 5 creditors, and the committee decided that the settlements outweighed the risks that would have been associated with litigation.
In addition, the committee said class 5 creditors hold a majority of seats on the committee, so there is no reason for Triple Net to assume the class 5 creditors are not being properly represented.
As previously reported, Triple Net asked the court to order appointment of a separate committee on March 5.
Triple Net said in the motion that including both classes of creditors on the same committee presents a conflict of interest because the class 4 ongoing unsecured creditors have already been paid or will be paid in full under Sirva's plan of reorganization, while the other general unsecured creditors are slated to receive nothing.
Triple Net said the class 4 creditors' counsel cannot represent the class 5 creditors without jeopardizing the ongoing unsecured creditors' guaranteed recovery.
Sirva, a Westmont, Ill.-based relocation services provider, filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 08-10375.
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