In bankruptcy cases, official committees can have their fees paid for by the bankrupt company rather than having to come up with the money themselves.
The group's lawyer, Michael Richman, of the Patton Boggs law firm, argued that an official committee was necessary because his clients -- many of them retirees and individual families -- had limited means and that the bondholders were a large disparate group.
"Some people think we are insane to be standing in the way of this process, but this is about adequate representation," Richman told the court.
Richman told reporters after the hearing it was "likely" his clients would continue to object to GM's fast track sale, but he was unsure what they would be able to do given their spending limits. Richman said he was planning to meet the official committee of unsecured creditors to see if they would adopt any of the objections his group has raised.
www.reuters.com/article/governmentFilingsNews/idUSN238817420090623
See Also: Judge Shoots Down Plea for Extra GM Bondholders Committee
After the hearing, Richman said he will likely press on with the bondholders' objection to the sales plan, but that he's not sure how the bondholders will pay for continued high quality legal representation. "It's a challenge of resources," he says.
http://amlawdaily.typepad.com/amlawdaily/2009/06/judge-rejects.html
This is not good news for small bondholders. One has to wonder if the judge's decision was infuenced by fear of the U.S.Government.
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