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Horsehead Holdings Committee Approved

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The U.S. Bankruptcy Court approved Guy Selmar Spier’s motion for appointment of an official equity security holders’ committee to the Horsehead Holdings case. The order states, “[I]t is hereby ordered that, the Motions are Granted and the Court orders appointment of an official committee of equity security holders and directs the United States Trustee to appoint such committee as soon as reasonably practicable.”

As previously reported, Spier’s motion had argued, “Horsehead did not file for Chapter 11 protection from its creditors because it was insolvent. Horsehead filed because its bank accounts were frozen pursuant to technical default on a small line of credit….A company in chapter 11 is described as ‘reorganizing under protection from its creditors’, but it seems quite clear that this company hardly needs protection from its creditors. Instead, it is the equity holders who need protection from the actions of the creditors and of the company. An equity committee would be the right way to grant that protection.”

Read more Horsehead bankruptcy news.