FiberMark's creditor committee asks court to approve trading procedures

By Jeff Pines

Washington, Sept. 28 - FiberMark Inc.'s unsecured creditors' committee asked the U.S. Bankruptcy Court for the District of Vermont Monday to approve procedures to enable its members to trade FiberMark shares.

Since there is a legitimate concern that members of the committee might abuse their positions to trade in the company's shares, the committee recommended setting up a "wall" to separate those employees who serve on the committee from other members of their firms that trade securities.

Members of the committee have a fiduciary responsibility as do employees of the firms to get their clients the best returns, it said.

Among the committee's recommended procedures are: employees working on the committee will sign a letter acknowledging that they may get confidential information and that they know about the "wall;" they will notify the U.S. trustee and the committee counsel immediately if the "wall" is breached; employees working on the committee will not share any information with their firms' other employees; and employees working on the committee will not have access to trading reports on FiberMark's securities before a trade except to get reports on a weekly basis.

The U.S. trustee has indicated it agrees with the request, the committee said.

FiberMark, a Brattleboro, Vt.-based specialty paper and pressboard company, filed for bankruptcy on March 20, 2004. Its Chapter 11 case number is 04-10463.

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