Rotech equity committee asks court to delay valuation, plan hearings

By Caroline Salls

Pittsburgh, July 12 - Rotech Healthcare Inc.'s official equity committee asked the U.S. Bankruptcy Court for the District of Delaware to continue hearings on valuation and confirmation of the company's plan of reorganization, according to a Friday court filing.

The committee asked the court to postpone the confirmation hearing to mid-September from Aug. 20.

"Even if this court only extends confirmation to September 8, 2013, this case will have gone from petition date to confirmation trial in five months, a very fast time frame by anyone's measurement for a case of Rotech's size and complexity," the motion said.

"The competing views of the debtors and equity committee on valuation can and should be addressed at the scheduled confirmation hearing.

"Setting an expedited trial on valuation will have no other effect other than to needlessly prejudice the rights and ability of the equity committee and Rotech's shareholders to prepare and submit their views and evidence on valuation of these estates."

Documents needed

The equityholders said the committee's valuation expert has identified many but not all of the documents it needs to research, conduct due diligence and prepare an independent valuation report.

Some of the due diligence items sought for completion of an independent valuation report remain outstanding, the committee said.

The committee said the earliest date its expert could deliver the independent valuation report would be Aug. 16.

As a result, the equityholders said the valuation hearing should be continued to the confirmation hearing.

According to the motion, the "brief continuance sought is also justified based upon the debtor's delay in the production of plan-related discovery" and its failure to comply with the Federal Rule of Civil Procedure until July 9.

The committee said this failure delayed its ability to begin a review of more than 17,000 documents.

A hearing on the requested adjournment is scheduled for July 15.

Rotech, an Orlando, Fla.-based provider of home medical equipment and related products and services, filed for bankruptcy on April 8. Its Chapter 11 case number is 13-10741.

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