Malden Mills unsecured creditors committee requests appointment of 'responsible individual'

By Caroline Salls

Pittsburgh, March 22 - Malden Mills Industries, Inc.'s official committee of unsecured creditors requested court approval of the appointment of an individual to be responsible for the administration and management of the Chapter 11 case, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

The responsible individual would serve until a liquidating Chapter 11 plan is confirmed and a liquidating trustee, a creditors' trustee or a liquidating supervisor is appointed.

According to the motion, the company has ceased all business operations and has sold substantially all of its assets.

As a result, the committee said the only remaining parties in interest are the company's general unsecured creditors.

The committee said that, as the only remaining constituent of Malden Mills' estates, the general unsecured creditors are entitled to the appointment of a responsible individual who best represents their interests.

In addition, the committee recommended Steven D. Sass of Steven D. Sass, LLC to be appointed as the responsible individual.

Malden Mills, a Lawrence, Mass.-based textile company, filed for bankruptcy on Jan. 10 in the U.S. Bankruptcy Court for the District of Delaware. The case was transferred to the Massachusetts court on Jan. 16. Its Chapter 11 case number is 07-40124.

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