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IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re:
VYAIRE MEDICAL, INC., et al.,
Debtors.1
Chapter 11
Case No. 24-11217-BLS
Jointly Administered
DECLARATION OF FRANCES THOMPSON IN SUPPORT OF
HARTFORD FIRE INSURANCE COMPANY’S AND HARTFORD
INSURANCE COMPANY OF THE MIDWESTS’ RESERVATION OF
RIGHTS AND LIMITED OBJECTION TO THE DEBTORS’
SUCCESSFUL BIDDER NOTICE (AMONG OTHER RELIEF)
I, Frances Thompson, of full age, hereby declare as follows:
1.
I am a Bond Claims Representative for Hartford Fire Insurance Company. As such,
I am fully familiar with the facts contained in this Declaration.
2.
I make this Declaration on behalf of Hartford Fire Insurance Company and Hartford
Insurance Company of the Midwest (collectively, “Hartford” or the “Sureties”).
3.
Prior to June 9, 2024 (the “Petition date”), Hartford issued the following
Pharmaceutical and Customs bonds (the “Bonds”) on behalf of certain Debtors totaling
$700,000.00:
1 The last four digits of Debtor Vyaire Medical, Inc.’s federal tax identification number are 6495. A complete list of
each of the Debtors in these chapter 11 cases and each such Debtor’s federal tax identification number may be
obtained on the website of the Debtors’ proposed claims and noticing agent at
https://omniagentsolutions.com/Vyaire. The location of Debtor Vyaire Medical, Inc.’s principal place of business and
the Debtors’ service address in these chapter 11 cases is 26125 North Riverwoods Boulevard, Mettawa, Illinois,
USA 60045.
Case 24-11217-BLS Doc 390 Filed 08/15/24 Page 1 of 4
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Principal
Bond No.
Obligee
Nature of Bond
Expiration
Date
Bond
Amount
Vyaire Medical, Inc. and
Vyaire Medical 211, Inc. 20BSBAA2688
California State
Board of
Pharmacy
Pharmaceutical
Bond
04/30/2025 $100,000
Vyaire Medical, Inc. and
Vyaire Medical 211, Inc. 20BSBIL8800
Nevada State
Board of
Pharmacy
Pharmaceutical
Bond
10/21/2024 $100,000
Vyaire Medical, Inc.
20BSBAA2687
Maryland Board
of Pharmacy
Pharmaceutical
Bond
04/30/2025 $100,000
Vyaire Medical, Inc.
22C000T8M
Bureau of
Customs and
Border Protection Custom Duty
06/07/2025 $400,000
4.
In connection with Hartford’s execution and/or issuance of the Bonds, certain of
the Debtors and/or their non-debtor affiliates as indemnitors, executed in favor of Hartford as
indemnitee, General Indemnity Agreements (the “Indemnity Agreements”) in which indemnitors
agreed to indemnify, exonerate and hold harmless the Sureties. A redacted copy of the Indemnity
Agreements are attached hereto as Exhibit A and Exhibit B .
5.
The Indemnity Agreements, among other provisions, provides in pertinent part:
"Loss" means any and all payments and interest theron from the date
of payment, including but not limited to, attorney fees, court costs,
and all other fees or costs, made by Hartford: (i) in the belief that it
was or may be liable as a consequence of Underwriting any Bond;
(ii) because of the failure of any Indemnitor or Principal to discharge
its obligations under any Bond; (iii) in investigating and responding
to any notice, demand, claim, suit, regulatory proceeding or request
received by or made to Hartford; or (iv) in enforcing the terms and
obligations of this Agreement.
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***
Indemnitors shall indemnify, hold harmless and exonerate Hartford
from and against any and all Loss claims, demands, liabilities,
expenses, suits, orders, judgments, or causes of action arising out of
or related to the underwriting of any Bond.
See Exhibit A.
Indemnitor(s) agree to indemnify Hartford and save it harmless
from any and all loss and expense of whatsoever kind or nature,
including, but not limited to interest, court costs, attorney fees,
incurred by Hartford in connection with or by reason of furnishing
any bond hereunder. The undersigned lndemnitor(s) hereby agree to
deposit upon demand with Hartford an amount sufficient to
discharge any claim or any such bond, which deposit may be held
by Hartford as collateral security against any loss or cost on this
bond.
See Exhibit B.
6.
Hartford has incurred attorneys’ fees and costs in this matter and will continue to
incur attorneys’ fees and costs in this matter.
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Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the facts set forth in
the foregoing declaration are true and correct to the best of my knowledge, information, and
belief.
Date: August 15, 2024
_______________________
Frances Thompson
Bond Claims Representative
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