Exaeris asset buyer held in contempt of court for failing to close sale

By Caroline Salls

Pittsburgh, Oct. 14 - Exaeris, Inc. asset purchaser Jack Kachkar was deemed in contempt of the U.S. Bankruptcy Court for the District of Delaware's order directing Kachkar to comply with his agreement to purchase the company's assets, according to a Tuesday court filing.

Judge Kevin Gross has ordered Kachkar to pay a $418,394 final judgment amount, which includes a $10,000 sanction related to the contempt ruling. The balance of the payment is the amount Kachkar owes to Exaeris in connection with the asset sale compliance order.

The final judgment amount will bear interest at the maximum legal rate until paid in full, according to Gross' ruling.

If Kachkar does not make the final judgment payment, any funds or property that he would be entitled to receive from the estate of Inyx USA, Ltd. will be deposited with the court registry for Exaeris' benefit.

As previously reported, Exaeris' official committee of unsecured creditors asked the court to hold Kachkar in contempt for not closing on the asset sale.

Although Kachkar agreed to close the sale by Sept. 3, the committee said he has not done so.

The committee said it has received several assurances that the required funds were being wired. However, the committee said Kachkar has not followed through on these promises, "and it appears that Kachkar is intent on continuing to avoid his responsibilities under the plan."

"Unless the court imposes appropriate sanctions against Kachkar for his failure to abide by the court's order, he will not close on the sale and the entire benefit from the plan will be lost," the committee said in the motion.

Exaeris is a subsidiary of Inyx, Inc., which develops drug delivery technologies and products for the treatment of respiratory, allergy, dermatological, topical and cardiovascular conditions.

Exaeris was placed in bankruptcy on July 2, 2007. Its Chapter 11 case number is 07-10887.

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