Implant Sciences and the U.S. Trustee assigned to the case filed with the U.S. Bankruptcy Court separate objections to the official committee of equity security holders’ motion to retain D.F. King & Co. to provide plan solicitation services.
The Company asserts, “Simply put, the retention of D.F. King & Co. is unnecessary and not in the best of the Debtors’ estates, shareholders or other parties in interest….Prior to this (self-created and purported) emergency filing, the Equity Committee made no effort to discuss with the Debtors either the necessity of D.F. King’s proposed retention, or the nature and scope of services it seeks to have D.F. King provide in light of the services that KCC, who is the Debtors’ previously engaged noticing and claims agent, would be providing in connection with solicitation of the Plan.”
In addition, “The Application lays bare the fallacy of the Equity Committee’s supposed ‘concern’ for the administrative burn in these chapter 11 cases – it proposes an entirely unnecessary and unreasonable expense to be borne by the Debtors’ estates and ultimately the common shareholders, which is fraught with the potential to create even more unnecessary costs in the future. The Debtors cannot agree to for the needless expenditure of estate resources for a superfluous, targeted campaign that, as demonstrated by the Equity Committee’s proposed Plan Support Letter, could potentially be rife with misstatements and mischaracterizations of fact, as well as unfounded, irresponsible personal attacks against the Debtors’ management team.”
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