TLC Vision shareholders' official committee representation denied

By Caroline Salls

Pittsburgh, March 23 - A TLC Vision (USA) Corp. shareholders group's motion for appointment of an official committee of equity security holders for the company's bankruptcy case was denied Tuesday by the U.S. Bankruptcy Court for the District of Delaware.

The shareholders who requested the commitment appointment included Strategic Turnaround Opportunity Fund, LP, Strategic Turnaround Equity Partners, LP (Cayman), Rexon Galloway Capital Growth, LLC, Trinad Capital Master Fund Ltd., Red Oak Fund, LP, Pinnacle Fund, LLLP., Bruce Galloway Rollover IRA, Sara Galloway Rollover IRA, Gary Herman IRA, Inventron, Ltd. (Energy), Lorraine Herman and Larry Hopfensinger.

The shareholders, who own roughly 12% of the company's common stock, said in the motion that they wanted the committee "for the purpose of securing independent representation for public shareholders" at a crucial stage of the Chapter 11 proceeding.

"If an equity committee is appointed, the shareholders will be able to meaningfully participate in plan negotiations, potentially increasing the existing return to equity holders and ensuring the adequate representation of their interests at a time when others will likely seek to sell them short," said the motion.

In his order, judge Kevin Gross said the shareholders provided no evidence to support their claim of insolvency, and that he was satisfied that the shareholders are already adequately represented in TLC Vision's case.

TLC Vision, a Mississauga, Ont.-based eye care services company, filed for bankruptcy on Dec. 21. Its Chapter 11 case number is 09-14473.

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