Exaeris emerges from bankruptcy

By Caroline Salls

Pittsburgh, March 24 - Exaeris, Inc. emerged from Chapter 11 bankruptcy when its plan of liquidation took effect on Monday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the court ordered the buyer of substantially all of the company's assets to comply with its plan and sale obligations in August 2008.

According to the sale compliance motion, the court confirmed the plan and approved the sale of the company's assets to a nominee of chairman and chief executive officer Jack Kachkar on May 23, 2008.

Although the company had met all of the closing conditions, the official committee of unsecured creditors said neither Kachkar nor his nominee had tendered the sale consideration or completed the appropriate documents.

In October, the court held Kachkar in contempt of the sale compliance order.

Treatment of creditors under the plan will include:

• Holders of administrative claims, priority claims and other priority claims will receive full payment in cash;

• Holders of other secured claims will receive either full cash payment or the return of the collateral securing the claim;

• Holders of general unsecured claims will receive a share of the proceeds from the sale of substantially all of the company's assets; and

• Interests will be cancelled and holders will receive no distribution under the plan.

Edward A. Phillips has been appointed as liquidating trustee.

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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