Exaeris U.S. Trustee asks court to convert or dismiss Chapter 11 case following sale denial

By Caroline Salls

Pittsburgh, Jan. 16 - Exaeris, Inc.'s U.S. Trustee has asked the U.S. Bankruptcy Court for the District of Delaware to either covert the company's case to Chapter 7 bankruptcy for liquidation or dismiss the case after the court denied the sale of substantially all of its assets, according to a Wednesday court filing.

U.S. Trustee Kelly Beaudin Stapleton said the denial of the sale motion and the lack of operations will cause a substantial loss to Exaeris' estate.

In addition, Stapleton said there is no reasonable chance that the company can be rehabilitated.

A hearing is scheduled for Feb. 1.

Parent Inyx, Inc. develops drug delivery technologies and products for the treatment of respiratory, allergy, dermatological, topical and cardiovascular conditions.

Its subsidiaries, Exaeris and Inyx USA, based in Puerto Rico, were placed in bankruptcy on July 2, 2007. On Dec. 6, the court ordered that the Inyx USA and Exaeris cases be severed. The case number is 07-10887.

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