October 20, 2017 / 9:36 PM / a year ago

U.S. trustee opposes committee for bankrupt Seadrill's shareholders

The U.S. government’s bankruptcy watchdog on Thursday said an investor with 58,000 Seadrill Ltd shares has failed to make a convincing case for appointing a committee to represent stockholders in the offshore drilling contractor’s bankruptcy.

Equity committees are rarely appointed in Chapter 11 bankruptcy cases because debtors are generally considered insolvent. Debtors have to pay for an official committee’s professionals, which would leave less money to repay creditors.

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