Things to include in your EC letter

I have received requests for guidance in writing a letter. Here are some things that I feel are important.

1. Detail the number of shares you and any joint-owners hold (this is critical).

2. Express your desire in having an Official Equity Committee formed.

3. List areas of concern with the First Amended Disclosure Statement.

• Each record holder has the right to subscribe for and purchase not less than $50,000 of New Equity (NE Rights), provided, however, that in the event more than 200 Record Date Holders subscribe for NE Rights, only the Top 200 Holders will be eligible and permitted to actually subscribe. All shareholders should have the right to participate in the rights offering.
• Current management controls 51.9 percent of MMPI equity. The plan represents a "management plan".
• The rights offering proposes raising $10 million - a very small amount for a company. The company can easily exit Chapter 11 with more cash on hand if all shareholders could participate.

4. State your concern that MMPI will exit bankruptcy as a non-filing company. A Form 15 was filed on 1/19/10 with SEC, terminating registration of common shares.

5. Explain that the Official Equity Committee could help all shareholders benefit working with third-party plan proponents.

I hope this helps!