Plus, it looks like the company may not be liquidated totally, there may be a type of reorganization- can you imagine this thing as a REIT? That might have the potential to do better than a liquidation, especially considering the types of valuations that REITs can occasionally get.
With this Motion, the Debtors seek appointment of an examiner to undertake a prompt, impartial investigation of any alleged mismanagement and breaches of fiduciary duty by the Debtors' current and former officers and directors, and others as
the examiner might determine. Such an investigation will benefit all parties in interest for at
least four reasons. First, all parties in interest will benefit from an impartial, prompt assessment
by an independent third party of whether there are any valuable officer and director claims that
might be a source of recovery for stakeholders.Second, the Debtors wish to move quickly towards formulation of a plan of reorganization or liquidation. An impartial, prompt assessment of the viability and value of such claims (if any) will be important for stakeholders in negotiating the terms of a plan....
Finally, appointment of an independent examiner should conserve estate
expenses. Because the Equity Committee and Esopus have made allegations that the Debtors'
board and management mismanaged the Debtors prior to the petition date, there is no question
that these alleged matters will be investigated. Each Committee has asserted that it should
conduct any such investigation. Accordingly, it is a foregone conclusion that estate funds must
be spent on an investigation.
Wow. This should be good stuff.
Disclosure/Disclaimer: I do not own any financial instruments in regard to any of the companies mentioned. I reserve the right to change any of my positions at any time. This is not advice of any kind. Always do a ton of your own research in regard to anything that I say, do, write, or so much as even think about.