| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers E > Headlines for Exaeris, Inc. > News item |
Exaeris and Inyx USA creditors' committee objects to priority liens granted under DIP agreement
By Caroline Salls
Pittsburgh, July 25 - Exaeris, Inc. and Inyx USA, Ltd.'s official committee of unsecured creditors objected to the companies' proposed debtor-in-possession financing from parent Inyx, Inc.'s officer and director, Jack Kachkar, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.
According to the objection, although it recognizes that the companies need to obtain DIP financing to continue their operations while in Chapter 11, the committee said it is concerned that issues could arise from the proposed DIP that could benefit Kachkar at the expense of unsecured creditors.
The committee said it objected to Kachkar being awarded priority liens on all of the company's property and to the court granting Kachkar a super-priority administrative claim.
In addition, despite several disputes between Inyx lender Westernbank Puerto Rico regarding the DIP funding, the entire DIP has already been funded under the interim order.
As a result, the committee said the companies should provide it with a weekly disbursement report showing how the DIP loan proceeds are being used.
Also, since it will be participating in the companies' pending Westernbank fraud allegation lawsuit, the committee said any DIP funding should be required to cover its costs and expenses.
Inyx 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 U.S. subsidiaries - Exaeris and Inyx USA - were placed in bankruptcy on July 2, and their Chapter 11 case number is 07-10887.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.