Lucira seeks exclusivity extension, committee objects to plan

By Sarah Lizee

Olympia, Wash., June 22 – Lucira Health, Inc. is seeking an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company asked the court to extend the exclusive plan filing period through Sept. 20 from June 22 and the exclusive solicitation period through Nov. 20 from Aug. 21.

The company has already filed a plan, and the hearing to consider conditional approval of the plan’s disclosure statement is scheduled for June 28.

Lucira said the complexity and relatively short duration of its case weigh in favor of the extension.

Committee objection

Meanwhile, the official committee of unsecured creditors has objected to the disclosure statement.

The group noted that the only assets that remain available to fund distributions to unsecured creditors are potentially valuable claims and causes of auction against the debtor’s current and former directors, officers, other insiders, professionals and agents, which have been the subject of the committee’s ongoing investigation.

The committee said that even though the debtor had agreed to preserve the claims for the benefit of the estate, the plan and disclosure statement seek to relinquish the causes of action for no value by providing broad releases in return for no consideration.

“The proposed releases are particularly egregious and inappropriate because the debtor, who conducted no independent investigation or analysis of any potential claims and causes of action against the investigation target released parties, are on notice that the committee believes, based on its investigation, that the debtor’s estate holds potentially valuable claims against the investigation target released parties that could provide a meaningful source of recovery for the remaining unsecured creditor body,” the committee said.

Lucira is a medical technology company based in Emeryville, Calif. The company filed bankruptcy on Feb. 22 under Chapter 11 case number 23-10242.

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