Exaeris obtains court approval of bid procedures for sale of substantially all assets

By Reshmi Basu

New York, Dec. 17 - Exaeris, Inc. received court approval of the bid procedures for the sale of substantially all of the company's assets, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Inyx, Inc. chairman and chief executive officer Jack Kachkar is the stalking horse bidder. Kachkar's bid will include a credit bid equal to the amount outstanding under Exaeris and Inyx USA, Ltd.'s debtor-in-possession facility and a $337,500 cash payment.

Kachkar will also receive a $2.08 million super-priority administrative claim against Exaeris.

According to the motion, since the companies' DIP facility expired, Exaeris has laid off its employees and discontinued all its operations, except for the operations of its eye care business to avoid accruing administrative expenses.

Given the nature of the assets and the amount of post-bankruptcy debt, the company's official committee of unsecured creditors decided that Kachkar is the most likely buyer for the assets.

Under the stalking horse agreement, the sale must close by Jan. 15.

No break-up fee will be paid if Kachkar is not the high bidder.

Competing bids must include a 10% deposit and must exceed Kachkar's proposed purchase price by $50,000.

Subsequent bids at auction must be for at least $20,000 more than the previous bid.

Inyx, Inc. is a pharmaceutical company based in New York that develops drug delivery technologies and products for the treatment of respiratory, allergy, dermatological, topical and cardiovascular conditions. Its subsidiaries - Exaeris and Inyx USA - were placed in bankruptcy on July 2, and their Chapter 11 case number is 07-10887.

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