Integrated Electrical committee members allowed to trade equity securities under ethical screening wall

By Caroline Salls

Pittsburgh, April 7 - Integrated Electrical Services, Inc.'s official committee of unsecured creditors obtained approval from the U.S. Bankruptcy Court for the Northern District of Texas to allow current and future committee members to trade the company's equity securities after establishment of an ethical screening wall, according to a Friday court filing.

According to the motion, committee members who trade IES' publicly traded securities for others or for their own accounts as a regular part of their business will be allowed to do so without violating their fiduciary duties as committee members.

The committee said it did not want to subject members' holdings to possible disallowance, subordination or other adverse treatment.

Under the motion, any member who trades the securities will establish an "ethical wall" to prevent the misuse of any material non-public information obtained through his or her activities as a committee member.

Integrated Electrical Services, a Houston-based provider of electrical services to the commercial, industrial and residential markets, filed for bankruptcy on Feb. 14. Its Chapter 11 case number is 06-30602.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.