ViewRay DIP facility draws objection from creditors committee

By Sarah Lizee

Olympia, Wash., Aug. 17 – ViewRay, Inc.’s motion seeking approval of a modified $9 million debtor-in-possession facility via MidCap Financial Services, LLC drew an objection from the official committee of unsecured creditors, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The group said the DIP facility as currently proposed would impose upon the debtors, their estates and the unsecured creditors burdensome conditions that benefit only the DIP lenders without providing any material benefit in return.

“The proposed DIP facility is predicated on a cramped 10-week budget (which, in the committee’s view, materially understates certain expenses likely to be incurred during the sale process, including professional fees) and does not account at all for the funding needed to wind down these Chapter 11 cases, whether through a post-sale plan or other mechanism,” the committee said in the objection.

The group said it doesn’t consent to a DIP facility that provides the DIP lenders with a rollup of $18 million prepetition debt, about $2 million in total interest and fees, and an additional $1 million in cash as adequate protection, while permitting the DIP lenders to exercise “boundless discretion” over whether and how much to lend to the debtors.

Denver-based ViewRay designs, manufactures and markets MRIdian, a magnetic resonance image-guided radiation therapy system to simultaneously image and treat cancer patients. The company filed Chapter 11 bankruptcy on July 16 under case number 23-10935.

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