Tom's Foods former employees' request for special committee denied

By Caroline Salls

Pittsburgh, Sept. 13 - Tom's Foods, Inc. former employees' request for establishment of a special committee of former employees was denied Tuesday by the U.S. Bankruptcy Court for the Middle District of Georgia.

Tom's Chapter 11 U.S. Trustee, ad hoc noteholders committee and debtor-in-possession lenders had all objected to the request for the committee.

According to the trustee, the former employees had not proven the official committee of unsecured creditors is not adequately representing the former employees' interests.

Also, the trustee said establishing a new committee "to represent a single group of unsecured creditors to advocate their particular self interests would result in significant additional costs to the estate."

The DIP lenders and noteholders' committee said, "The appointment of a special committee is not warranted in this case and would be an unnecessary administrative drain on an already heavily burdened estate."

In their motion, the former employees said Tom's has continued to make payments under its two retirement programs and several severance plans as general obligations of the company, but it is not expected that those payments will be continued.

The employees said they expect to be impaired as general unsecured creditors of the estate.

The employees also said it was unlikely that Tom's official committee of unsecured creditors could represent them.

Tom's, a Columbus, Ga.-based snack food company, filed for bankruptcy on April 6. Its Chapter 11 case number is 05-40683.

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