SmileDirectClub’s Chapter 7 trustee seeks cash collateral access

By Sarah Lizee

Olympia, Wash., Feb. 12 – SmileDirectClub Inc.’s Chapter 7 bankruptcy trustee is seeking approval to access cash collateral, according to an emergency motion filed Saturday with the U.S. Bankruptcy Court for the Southern District of Texas.

The motion was jointly filed by the Chapter 7 trustee, Allison D. Byman, and debtor-in-possession administrative and collateral agent Cluster Holdco LLC.

As of Saturday, the DIP obligations totaled about $30.5 million, according to the DIP agent.

Byman said she requires immediate access to cash in order to preserve and protect assets of the debtors’ estates, including the debtors’ books and records, and to protect the interests of the debtors’ creditors and stakeholders.

SmileDirectClub is a Nashville-based oral care company. It filed bankruptcy on Sept. 29 under Chapter 11 case number 23-90786.

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