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FiberMark creditors committee, AIG, Post support proposed investigation by examiner
New York, April 11 - FiberMark, Inc.'s official committee of unsecured creditors along with two major creditors, AIG Global Investment Corp. and Post Advisory Group LLC, supported the bankruptcy judge's proposal to appoint an examiner to look into whether creditors have breached Chinese walls in their trading of claims, among other matters.
The unsecured creditors committee said its vote in favor of the examiner was unanimous; the four members of the committee are AIG, Post, SilverPoint Capital, LP and Wilmington Trust Co.
The U.S. Trustee for the case has already backed the proposal, made March 30 by judge Colleen Brown. She asked the company, creditors, the U.S. Trustee and other parties involved to explain why the court should not, of its own initiative, bring in an examiner.
If named, the examiner would investigate whether the screening order barring the use of confidential information in trading has been breached, whether FiberMark or its employees have committed irregular conduct and any other allegations that the court asks the examiner to look at.
However both the committee and AIG and Post said the committee still needs to hire Klee, Tuchin, Bogdanoff & Stern LLP as special counsel. They had previously asked to employ Klee Tuchin to investigate SilverPoint Capital's acquisition of claims from Solution Dispersions, Inc., formerly a member of the creditors committee, its purchase of claims from company employees, whether Silver Point improperly used confidential information and whether Silver Point violated court orders to prevent improper use of confidential information.
FiberMark, a Brattleboro, Vt., producer of specialty fiber-based materials, filed for bankruptcy on March 30, 2004 in the U.S. Bankruptcy Court for the District of Vermont. Its Chapter 11 case number is 04-10463.
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