Trenwick America's unsecured creditors, U.S. trustee oppose appointing equity committee

By Jeff Pines

Washington, April 23 - Trenwick America Corp. does not need an official equity committee, the unsecured creditors' committee and the U.S. trustee said.

Both filed objections to the proposal - the creditors Thursday and the trustee Friday - with the U.S. Bankruptcy Court for the District of Delaware.

The trustee said it rejected a request from Alexander Arpad, a shareholder of Trenwick Group Ltd. and LaSalle Re Holdings Ltd., on Nov. 3, 2003. Trenwick Group and LaSalle are based in Bermuda. Trenwick America is an indirect subsidiary of Trenwick Group.

The trustee rejected the request because the petitioners do not own any shares of Trenwick America stock.

On April 9 Arpad, along with two other shareholders who had also previously filed a request for an official equity committee, filed a new request for an equity committee.

Trenwick America's proposed reorganization plan calls for dismissing the bankruptcy cases against the two Bermuda companies once its plan is confirmed, the trustee and the creditors said.

Since the company is insolvent, an official equity committee would just add an unnecessary expense, the creditors' committee argued.

In addition, the request comes five months after the trustee rejected the first request so it is not timely, the trustee said.

An April 27 hearing is scheduled.

The company filed for bankruptcy on Aug. 20, 2003. Trenwick's Chapter 11 case number is 03-12635.

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