Reddy Ice, creditors, noteholders object to equity committee request

By Lisa Kerner

Charlotte, N.C., May 10 - The official committee of unsecured creditors of Reddy Ice Corp., the ad hoc committee of noteholders, Reddy Ice Holdings, Inc. and Reddy Ice Corp. filed objections to a motion by the informal shareholder group requesting the appointment of an official committee of equity interest holders for the company's bankruptcy case, according to separate filing with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, the informal shareholder group, including Alan Bernon, Ron Klein, Harold Ginsburg, Pete Schenkel and Wayne Stoltenberg, had argued that non-insider shareholders have been completely shut out from the companies' restructuring so far.

The shareholders said a Chapter 11 debtor cannot pay some of its creditors more than 100% of their claims while eliminating equity as the cases are designed to do.

The shareholders also questioned transparency and valuation issues.

Reddy Ice, the creditors and the noteholders do not believe an equity committee is needed.

Reddy Ice, a Dallas-based manufacturer and distributor of packaged ice, filed for bankruptcy on April 12. The Chapter 11 case number is 12-32349.

© 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.