Endologix creditors object to statement, seek deferral of plan hearing

By Caroline Salls

Pittsburgh, Aug. 3 – Endologix Inc.’s official committee of unsecured creditors objected to approval of the disclosure statement for the company’s proposed Chapter 11 plan, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

“The committee objects to the approval of the disclosure statement for two principal reasons: (i) the disclosure statement lacks adequate information with respect to several material aspects of the plan such that creditors cannot make an informed voting decision with respect to the plan, and (ii) the plan is patently unconfirmable,” the objection said.

“The committee respectfully submits that proceeding to a confirmation hearing on the woefully inadequate existing record is a waste of estate resources.”

If the court does approve the disclosure statement, the committee is seeking permission to provide a letter with the document reflecting its views, including the right to make a recommendation that unsecured creditors vote to reject the plan.

In addition, the creditor group said the proposed plan confirmation hearing date should be deferred by at least six weeks to allow the committee to complete an investigation of the company’s pre-bankruptcy secured loan facilities, the conduct of the secured lender, Endologix’s negotiations with its proposed new owner and a pre-bankruptcy marketing process that was conducted at the height of the Covid-19 market shutdown.

Irvine, Calif.-based Endologix develops and manufactures minimally invasive treatments for aortic disorders. The company filed bankruptcy on July 5 under Chapter 11 case number 20-31840.

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