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Vyaire - COC -Omni Admin Agent App KE Comments 7.25.2024

Date
2024-07-26

Summary

Doc 319-2, filed July 26, 2024 in In re Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), in the U.S. Bankruptcy Court for the District of Delaware, is Exhibit 2, a blackline of an order authorizing the Debtors to employ and retain Omni Agent Solutions, Inc. as administrative agent effective as of the petition date. The order approves the application under sections 327(a) and 328(a) of the Bankruptcy Code and finds Omni a disinterested person under section 101(14). It requires Omni to apply to the Court for compensation, states that Section XI of the Engagement Agreement has no force or effect, and bars compensation for defending its fee applications. The blackline revises the indemnification paragraphs to refer to the Indemnified Parties and limits indemnity for claims such as bad faith, gross negligence or fraud, citing In re United Artists Theatre Co., 315 F.3d 217.

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Case 24-11217-BLS   Doc 319-2   Filed 07/26/24   Page 1 of 6




                        Exhibit 2

                        Blackline
                  Case 24-11217-BLS             Doc 319-2          Filed 07/26/24      Page 2 of 6




                         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 No. 237

                     ORDER AUTHORIZING DEBTORS TO
          EMPLOY AND RETAIN OMNI AGENT SOLUTIONS, INC. AS
       ADMINISTRATIVE AGENT EFFECTIVE AS OF THE PETITION DATE

             Upon the application (the “Application”)2 of the Debtors in the Chapter 11 Cases for

entry of an order, pursuant to sections 327(a) and 328(a) of the Bankruptcy Code, Bankruptcy

Rules 2014(a) and 2016, and Local Rule 2014-1, (a) authorizing the Debtors to employ and

retain Omni Agent Solutions as the Administrative Agent in the Chapter 11 Cases effective as of

the Petition Date pursuant to the Engagement Agreement; and (b) granting related relief; and the

United States District Court for the District of Delaware having jurisdiction over this matter

pursuant to 28 U.S.C. § 1334, which was referred to the Court under 28 U.S.C. § 157 and the

Amended Standing Order of Reference from the United States District Court for the District of

Delaware, dated February 29, 2012; and the Court having authority to hear the matters raised in

the Application pursuant to 28 U.S.C. § 157; and venue being proper before this Court pursuant

to 28 U.S.C. §§ 1408 and 1409; and consideration of the Application and the requested relief




1
    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’ 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.
2
     Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Application.
             Case 24-11217-BLS          Doc 319-2      Filed 07/26/24      Page 3 of 6




being a core proceeding that the Court can determine pursuant to 28 U.S.C. § 157(b)(2); and due

and proper notice of the Application and opportunity for a hearing on the Application having

been given to the Notice Parties, and it appearing that no other or further notice need be

provided; and the Court having reviewed and considered the Application, the Deutch Declaration

and the First Day Declaration; and the Court having held, if necessary, a hearing on the

Application (the “Hearing”); and the Court having found that the legal and factual bases set forth

in the Application establish just cause for the relief granted herein; and the Court having found

that the terms and conditions of Omni’s employment are reasonable as required by section 328(a)

of the Bankruptcy Code; and the Court having found that Omni is a “disinterested person” as that

term is defined in section 101(14) of the Bankruptcy Code; and the Court having found that the

relief requested in the Application being in the best interests of the Debtors, their creditors, their

estates, and all other parties in interest; and upon all of the proceedings had before the Court; and

after due deliberation and sufficient cause appearing therefor, it is hereby

       ORDERED, ADJUDGED AND DECREED THAT:

       1.      The Application is approved as set forth in this Order.

       2.      The Debtors are authorized to retain Omni as Administrative Agent effective as of

the Petition Date under the terms of the Engagement Agreement, and Omni is authorized to

perform the bankruptcy administration services described in the Application and set forth in the

Engagement Agreement.

       3.      Omni is authorized to take such other action to comply with all duties set forth in

the Application.

       4.      Omni shall apply to the Court for allowance of compensation and reimbursement

of expenses incurred after the Petition Date in accordance with the applicable provisions of the
             Case 24-11217-BLS         Doc 319-2      Filed 07/26/24     Page 4 of 6




Bankruptcy Code, the Bankruptcy Rules, the Local Rules, and any orders entered in these cases

regarding professional compensation and reimbursement of expenses.

       5.      Section XI of the Engagement Agreement is of no force or effect during these

Chapter 11 Cases.

       6.      Notwithstanding anything contained in the Application, the Engagement

Agreement, or any document ancillary thereto, absent a change in controlling law, Omni shall

not be compensated or reimbursed for, or in connection with, the defense of its fee applications.

       7.      5. The Debtors shall indemnify Omni (or the “Indemnified Parties”) under the

terms of the Engagement Agreement, as modified pursuant to this Order.

       8.      6. OmniThe Indemnified Parties shall not be entitled to indemnification,

contribution, or reimbursement pursuant to the Engagement Agreement for services other than

the services provided under the Engagement Agreement, unless such services and the

indemnification, contribution or reimbursement therefor are approved by the Court.

       9.      7. Notwithstanding anything to the contrary in the Engagement Agreement, the

Debtors shall have no obligation to indemnify Omnithe Indemnified Parties, or provide

contribution or reimbursement to Omnithe Indemnified Parties, for any claim or expense that is

either: (i) judicially determined (the determination having become final) to have arisen from

Omni’sthe Indemnified Parties’ bad faith, self-dealing, breach of fiduciary duty (if any), gross

negligence, willful misconduct or fraud; (ii) for a contractual dispute in which the Debtors allege

the breach of Omni’sthe Indemnified Parties’ contractual obligations if the Court determines that

indemnification, contribution or reimbursement would not be permissible pursuant to

In re United Artists Theatre Co., 315 F.3d 217 (3d Cir. 2003); or (iii) settled prior to a judicial

determination under (i) or (ii), but determined by this Court, after notice and a hearing, to be a
              Case 24-11217-BLS          Doc 319-2      Filed 07/26/24      Page 5 of 6




claim or expense for which Omnithe Indemnified Parties should not receive indemnity,

contribution or reimbursement under the terms of the Engagement Agreement as modified by

this Order.

       10.       8. If, before the earlier of (i) the entry of an order confirming a chapter 11 plan in

the Chapter 11 Cases (that order having become a final order no longer subject to appeal), or

(ii) the entry of an order closing the Chapter 11 Cases, Omnithe Indemnified Parties believes that

it isthey are entitled to the payment of any amounts by the Debtors on account of the Debtors’

indemnification, contribution and/or reimbursement obligations under the Engagement

Agreement (as modified by this Order), including the advancement of defense costs, Omnithe

Indemnified Parties must file an application therefore in this Court, and the Debtors may not pay

any such amounts to Omnithe Indemnified Parties before the entry of an order by this Court

approving the payment requested therein. This paragraph is intended only to specify the period

of time under which the Court shall have jurisdiction over any request for fees and expenses by

Omnithe Indemnified Parties for indemnification, contribution or reimbursement, and not a

provision limiting the duration of the Debtors’ obligation to indemnify Omnithe Indemnified

Parties. All parties in interest shall retain the right to object to any demand by Omnithe

Indemnified Parties for indemnification, contribution, or reimbursement.

       11.       9. The Debtors and Omni are authorized to take all actions necessary to effectuate

the relief granted pursuant to this Order in accordance with the Application.

       12.       10. Notwithstanding any term in the Engagement Agreement to the contrary, the

Court retains jurisdiction with respect to all matters arising from or related to the implementation

of this Order.
             Case 24-11217-BLS        Doc 319-2       Filed 07/26/24   Page 6 of 6




       13.     11. Notwithstanding any provision in the Bankruptcy Rules to the contrary, this

Order shall be immediately effective and enforceable upon its entry.

       14.     12. In the event of any inconsistency between the Engagement Agreement, the

Application, and the Order, the Order shall govern.


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