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Vyaire - COC - AirLife Stipulation

Date
2024-07-11

Summary

A certification of counsel filed October 15, 2024 as Doc 631 by the Debtors in the jointly administered Chapter 11 cases of Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), in the U.S. Bankruptcy Court for the District of Delaware, regarding a joint stipulation between the Debtors and SunMed Group Holdings, LLC (d/b/a AirLife) in connection with the Zoll sale. It recounts the Bidding Procedures Order entered July 11, 2024 [Docket No. 249], the notice of successful bidder for the ventilation assets filed August 15, 2024 [Docket No. 388], and the Zoll Sale Order entered September 4, 2024 [Docket No. 496]. It states that AirLife raised informal comments and objections and that the Debtors and AirLife agreed to resolve certain claims and the rejection of a prepetition agreement. The proposed order approving the stipulation is attached as Exhibit A.

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Full text

                   Case 24-11217-BLS             Doc 631       Filed 10/15/24         Page 1 of 4




                         IN THE UNITED STATES BANKRUPTCY COURT
                              FOR THE DISTRICT OF DELAWARE

                                                               )
    In re:                                                     )        Chapter 11
                                                               )
    VYAIRE MEDICAL, INC., et al.,1                             )        Case No. 24-11217 (BLS)
                                                               )
                             Debtors.                          )        (Jointly Administered)
                                                               )
                                                               )        Re: Docket Nos. 249, 388, & 496

     CERTIFICATION OF COUNSEL REGARDING JOINT STIPULATION BETWEEN
      THE DEBTORS AND SUNMED GROUP HOLDINGS, LLC (D/B/A AIRLIFE) IN
                       CONNECTION WITH ZOLL SALE

             The undersigned counsel to Vyaire Medical, Inc. and certain of its affiliates, the debtors

and debtors in possession in the above-captioned cases (collectively, the “Debtors”), hereby

certifies as follows:

             1.     On July 11, 2024, the United States Bankruptcy Court for the District of Delaware

(the “Court”) entered the Order (I) Approving Bidding Procedures in Connection with the Sale of

Substantially All of the Debtors’ Assets, (II) Authorizing the Debtors to Enter Into a Stalking Horse

Agreement and Provide Bid Protections, (III) Approving the Form and Manner of Notice Thereof,

(IV) Scheduling an Auction and Sale Hearing, (V) Approving Procedures for the Assumption and

Assignment of Contracts, (VI) Approving the Sale of the Debtors’ Assets Free and Clear, and (VI)

Granting Related Relief [Docket No. 249] (the “Bidding Procedures Order”), authorizing the

Debtors to solicit and select the highest or otherwise best offer(s) for a sale (or sales) of (a) all or




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 631      Filed 10/15/24    Page 2 of 4




substantially all of the assets or (b) one or more, or any combination of, assets of one or more

Debtors.

       2.      On August 15, 2024, the Debtors filed the Notice of (I) Successful Bidder for the

Sale of Certain of the Debtors’ Ventilation Assets, (II) Proposed Purchase Agreement in

Connection Therewith, and (III) Proposed Sale Order in Connection Therewith [Docket No. 388],

which attached thereto as Exhibit A the Asset Purchase Agreement related to the Debtors’

Ventilation Assets (as may be amended or otherwise modified from time to time and including all

related documents, exhibits, schedules, and agreements thereto, collectively, the “Zoll APA”).

       3.      On September 4, 2024, the Court entered the Order (A) Approving the Zoll Asset

Purchase Agreement and Authorizing the Sale of Certain Ventilation Assets of the Debtors Outside

the Ordinary Course of Business, (II) Authorizing the Sale of Assets Free and Clear of All Liens,

Claims, Interests, and Encumbrances, (III) Authorizing the Assumption and Assignment of

Executory Contracts and Unexpired Leases in Connection Therewith, and (IV) Granting Related

Relief [Docket No. 496] (the “Zoll Sale Order”) approving the sale of Debtors’ Ventilation Assets

to Zoll (the “Zoll Sale”).

       4.      In connection with the Bidding Procedures Order and Zoll Sale Order, SunMed

Group Holdings, LLC (d/b/a AirLife) (“AirLife”) raised informal comments and objections. In

addition, as more fully described in the Order Approving the Joint Stipulation Between the Debtors

and SunMed Group Holdings, LLC (d/b/a AirLife) in Connection With Zoll Sale attached hereto

as Exhibit A (the “Order”), as part of the Zoll Sale, the Debtors and AirLife agreed to resolve

certain claims and the rejection of a prepetition agreement which were integral to the Zoll Sale.

       5.      The Debtors have shared the Joint Stipulation Between the Debtors and SunMed

Group Holdings, LLC (d/b/a AirLife) in Connection With Zoll Sale with the Office of the United




                                                 2
               Case 24-11217-BLS       Doc 631      Filed 10/15/24    Page 3 of 4




States Trustee for the District of Delaware, counsel for the Official Committee of Unsecured

Creditors, and counsel for the Debtors’ debtor-in-possession lenders and such parties do not have

comments or objections to entry of the Order.

       6.      The Debtors respectfully request that the Court enter the Order at its earliest

convenience.




                          [Remainder of page Intentionally Left Blank]




                                                3
                          Case 24-11217-BLS        Doc 631    Filed 10/15/24     Page 4 of 4



Dated: October 15, 2024
Wilmington, Delaware

 /s/ Patrick J. Reilley
  COLE SCHOTZ P.C.                                           KIRKLAND & ELLIS LLP
  Patrick J. Reilley, Esq. (DE Bar No. 4451)                 KIRKLAND & ELLIS INTERNATIONAL LLP
  500 Delaware Avenue, Suite 1410                            Joshua A. Sussberg, P.C. (admitted pro hac vice)
  Wilmington, Delaware 19801                                 601 Lexington Ave
  Telephone:       (302) 652-3131                            New York, New York 10022
  Facsimile:       (302) 652-3117                            Telephone:    (212) 446-4800
  Email:           preilley@coleschotz.com                   Facsimile:    (212) 446-4900
                                                             Email:        joshua.sussberg@kirkland.com
 - and -
                                                             - and -
 Michael D. Sirota, Esq. (admitted pro hac vice)
 Warren A. Usatine, Esq (admitted pro hac vice)              Spencer A. Winters, P.C. (admitted pro hac vice)
 Court Plaza North, 25 Main Street                           Yusuf U. Salloum (admitted pro hac vice)
 Hackensack, New Jersey 07601                                333 West Wolf Point Plaza
 Telephone:     (201) 489-3000                               Chicago, Illinois 60654
 Facsimile:     (201) 489-1536                               Telephone:      (312) 862-2000
 Email:         msirota@coleschotz.com                       Facsimile:      (312) 862-2200
                wusatine@coleschotz.com                      Email:          spencer.winters@kirkland.com
                                                                             yusuf.salloum@kirkland.com


 Co-Counsel to the Debtors                                   Co-Counsel to the Debtors
 and Debtors in Possession                                   and Debtors in Possession




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