Request by Airgas USA, LLC for Allowance and Payment of Administrative Expense Claim — In re Vyaire Medical, Inc. (Doc 899)

Summary

Airgas USA, LLC files a request (Doc 899, filed 12/27/24, Case No. 24-11217 (BLS)) for allowance and payment of an administrative expense claim in the sum of $39,502.38 under sections 503(b)(1)(A) and 507(a)(2) of the Bankruptcy Code. The request states that under the Bulk Product Agreement, Airgas supplied certain gases and rented certain cylinders to the Debtors, and that the Contract was rejected under the Debtors' confirmed Second Amended Joint Chapter 11 Plan of Reorganization. It states that the Debtors owe the amount for charges incurred between the Petition Date and the Effective Date, and that certain charges relate to cylinders the Debtors recently informed Airgas they could no longer locate. The signature block carries /s/ Karen C. Bifferato, dated December 27, 2024.

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Full text

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE

In re:
)   Chapter 11

)
VYAIRE MEDICAL, INC., et al.,
)   Case No. 24-11217 (BLS)

)
                                   Debtors.                       )    Jointly Administered

REQUEST BY AIRGAS USA, LLC FOR ALLOWANCE AND
PAYMENT OF ADMINISTRATIVE EXPENSE CLAIM

Airgas USA, LLC (“Airgas”), by and through its undersigned counsel, hereby submits
this request for allowance and payment of its administrative expense claim in the sum of
$39,502.38 pursuant to sections 503(b)(1)(A) and 507(a)(2) of the Bankruptcy Code (defined
below), and in support hereof, respectfully represents as follows:
Background
1.
On June 9, 2024 (the “Petition Date”), each of the above captioned debtors (the
“Debtors”) filed voluntary petitions for relief under chapter 11 of title 11 of the United States
Code (“Bankruptcy Code”).
2.
Prior to the Petition Date, a predecessor of Airgas and one of the Debtors and/or a
predecessor of the Debtors, entered into a Bulk Product Agreement (the “Contract”).  Pursuant to
the Contract, Airgas supplied certain gases to the Debtors and Airgas rented certain cylinders to
the Debtors, which the Debtors used at their Irvine, CA and Palm Springs, CA locations.
3.
As of the Petition Date, the Contract was an “executory contract” as that term is
used throughout the Bankruptcy Code, as both Airgas and the Debtors had ongoing obligations
to one another under the Contract.
4.
Throughout the Debtors’ bankruptcy cases, Airgas believed that the Debtors were
going to assume the Contract.  However, ultimately, upon information and belief, the Contract
Case 24-11217-BLS    Doc 899    Filed 12/27/24    Page 1 of 3

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was rejected pursuant to the Debtors’ confirmed Second Amended Joint Chapter 11 Plan of
Reorganization (Docket No. 719) (the “Plan”).
5.
On or about November 27, 2024 (the “Effective Date”), the Debtors filed their
Notice of (i) Entry of Confirmation Order, (ii) Occurrence of Effective Date, and (iii) Related
Bar Dates (Docket No. 810) (the “Notice of Effective Date”).  Pursuant to the Notice of Effective
Date, the deadline for filing all claims that were incurred by the Debtors between the Petition
Date and the Effective Date, which remain unpaid, is December 27, 2024.
6.
Pursuant to the summary of post-petition charges attached hereto as Exhibit A, the
Debtors currently owe Airgas $39,502.381 for amounts that were incurred by the Debtors
between the Petition Date and the Effective Date, and which remain unpaid to date.  Certain of
the charges relate to loss of use of cylinders that Airgas rented to the Debtors, and that the
Debtors recently informed Airgas they could no longer locate, and could not return to Airgas
notwithstanding the rejection of the Contract.
Administrative Expense Claim Request
7.
Bankruptcy Code section 503(b)(1)(A) provides for the allowance of
administrative expenses, including in particular, the actual, necessary costs and expenses of
preserving the bankruptcy estate.  Section 507(a)(2) provides second administrative expense
priority for claims that are allowed under section 503(b) of the Bankruptcy Code.
8.
The Debtors owe Airgas $39,502.38 as an administrative expense claim under
sections 503(b)(1)(A) and 507(a)(2) of the Bankruptcy Code. The foregoing amount relates to
amounts incurred by the Debtors under the Contract subsequent to the Petition Date and prior to
the Effective Date. These amounts remain unpaid to date, and the Debtors and their estates

1 Copies of the applicable invoices are available upon request to counsel to Airgas.
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directly benefitted from their use of the post-petition gases and cylinder rental provided by
Airgas to the Debtors under the Contract.
9.
Accordingly, this Court should award Airgas an administrative expense claim in
the total amount of $39,502.38, to be paid to Airgas when distributions are made to holders of
allowed chapter 11 administrative expense claims pursuant to the Plan.
WHEREFORE, Airgas respectfully requests that its Request For Allowance and Payment
of Administrative Expense Claim be granted as requested herein and that it be granted such other
and further relief as the Court deems just and proper.

Dated: December 27, 2024

CONNOLLY GALLAGHER LLP

/s/ Karen C. Bifferato

Karen C. Bifferato (#3279)

1201 N. Market Street, 20th Floor

Wilmington, DE  19801

Telephone: (302) 757-7300

Email: kbifferato@connollygallagher.com

Attorneys for Airgas USA, LLC

Case 24-11217-BLS    Doc 899    Filed 12/27/24    Page 3 of 3

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