Oneida U.S. Trustee objects to request for official equity committee

By Caroline Salls

Pittsburgh, April 24 - Oneida Ltd.'s U.S. Trustee objected to the ad hoc committee of equity security holders' request for appointment of an official committee for the company's Chapter 11 case, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The U.S. Trustee said the company is insolvent, making appointment of an equity committee unwarranted, and the ad hoc committee has failed to prove that appointment of the committee is necessary to adequately represent equity security holders.

In addition, the trustee said the issues raised in the Oneida cases are not complex and the fact that the company entered Chapter 11 with a pre-negotiated plan that provided for a 100% distribution to general unsecured creditors will dramatically reduce the number and complexity of bankruptcy case issues.

The objection also said the benefit of appointing an equity committee is outweighed by the cost.

A hearing is scheduled for May 1.

Oneida, an Oneida, N.Y.-based maker of flatware, dinnerware, crystal and metal serving pieces filed for bankruptcy on March 19. Its Chapter 11 case number is 06-10489.

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