Epic committee asks court to deny extension, wants to propose plan

By Caroline Salls

Pittsburgh, Jan. 9 – Epic Cos., Inc.’s official committee of unsecured creditors objected to the proposed extension of the company’s periods for filing and soliciting votes on a Chapter 11 plan, saying “it now clearly appears that no consensual plan involving a compromise between the estates and lenders is reasonably likely,” according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

“The debtors’ estates are very nearly, completely liquidated,” the committee said in its objection. “The debtors no longer have any operations nor employees.”

In addition, the committee said Epic asset buyer White Oak claims the company’s post-bankruptcy credit facility has been terminated, and Epic no longer is able to make further draws on that facility.

Although many aspects of Epic’s Chapter 11 cases are concluded, the committee said the company’s estates “do have remaining significant potential claims against White Oak.”

Specifically, the committee said it has investigated the estates’ potential claims against White Oak while the Epic debtors’ professionals have been working to formulate a consensual plan of liquidation that would accommodate a potential, proposed compromise among the debtors, their lenders and the bankruptcy estates.

The creditor group said it demanded the company either pursue the claims against the lenders that the committee has identified or let that the committee know that it does not plan to do so. The committee said it also provided Epic and White Oak with a draft complaint spelling out its alleged estate claims and causes of action.

Although the company and the committee remain in discussions, Epic has not formally responded to the request, the objection said.

Meanwhile, the committee said White Oak has terminated all discussions with the committee, refused mediation, and rejected the committee’s most recent offer.

The committee said the court should not confirm any plan that proposes to release the claims it has found in its investigation.

Given that the claims identified by the committee will not be consensually compromised, the committee said the only plan structure that remains reasonably viable is a liquidating plan that provides the estates the opportunity to pursue the claims.

“While exclusivity persists, White Oak’s position and approach will not change,” the objection said.

“The court should deny the exclusivity motion, allow exclusivity to terminate and allow the committee to propose a plan for the benefit of the debtors’ estates.”

Epic is a Houston-based full-service provider to the global decommissioning, installation and maintenance markets. The company filed bankruptcy on Aug. 26 under Chapter 11 case number 19-34752.

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