< meta name="DC.Date.Valid.End" content="20050825"> Amendment Nine: Torching Torch

Wednesday, March 30, 2005

Torching Torch

Daily Deal (subscription only) gets the word out on the Creditor's Committee for Torch Offshore and their annoying behavior. After challenging the DIP, now the committee is asking for a trustee, and using the same arguments that they used for their defeated challenge to the DIP. DIP lender Regions Bank, along with GE I presume, call the creditor's committee out and a nice showdown is set for Wednesday.

But here's the thing, creditor's committees do this sort of crap all the time, and rarely is it ever in anyone's economic interest to keep having these hearings and having the DIP held up. But they do it anyway... and the lawyers for the committee, who pretty much have carte blanche, are the only ones making out by way of legal fees. Waste, waste, waste. Here's a place for some real reform, lets give b-judges a little more direction on how to stop lawyers from milking the company before it even gets reorganized.