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Vyaire - ROR re Disclosure Statement Motion

Date
2024-09-27

Summary

A reservation of rights filed September 27, 2024 as Doc 578 by the Official Committee of Unsecured Creditors in In re Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), in the U.S. Bankruptcy Court for the District of Delaware. It responds to the Debtors' motion to approve the adequacy of the Disclosure Statement and schedule a combined hearing [Docket No. 520]. The Committee states that changes to the plan's release mechanisms are being made to address its concerns about deemed consent to third party releases, and reserves its right to argue the opt out mechanism if they are not. It attaches a redline of its Disclosure Statement comments as Exhibit A, asks that conditional approval be denied until the changes are made, and states that it does not currently support the Plan. It is signed by McDermott Will & Emery LLP as Committee counsel.

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Full text

                    Case 24-11217-BLS             Doc 578       Filed 09/27/24         Page 1 of 3




                          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. 518, 519, 520 & 521

        RESERVATION OF RIGHTS REGARDING THE MOTION OF DEBTORS
         FOR ENTRY OF AN ORDER (I) APPROVING THE ADEQUACY OF THE
  DISCLOSURE STATEMENT ON AN INTERIM AND FINAL BASIS; (II) SCHEDULING
  A COMBINED DISCLOSURE STATEMENT AND PLAN CONFIRMATION HEARING,
(III) APPROVING THE SOLICITATION AND NOTICE PROCEDURES, (IV) APPROVING
      THE COMBINED HEARING NOTICE, AND (V) GRANTING RELATED RELIEF

              The Official Committee of Unsecured Creditors (the “Committee”) appointed in the above-

 captioned chapter 11 cases of Vyaire Medical, Inc. and its debtor affiliates (collectively, the

 “Debtors”), by and through its undersigned counsel, hereby files this reservation of rights (this

 “Reservation”) to the Motion of the Debtors for Entry of an Order (I) Approving the Adequacy of

 the Disclosure Statement on an Interim and Final Basis, (II) Scheduling a Combined Disclosure

 Statement Approval and Plan Confirmation Hearing, (III) Approving the Solicitation and Notice

 Procedures, (IV) Approving the Combined Hearing Notice, and (V) Granting Related Relief

 [Docket No. 520] (the “Motion”) and conditional approval of the Disclosure Statement for the

 Joint Chapter 11 Plan of Vyaire Medical, Inc. and its Debtor Affiliates [Docket No. 519] (the

 “Disclosure Statement”). In support of this Reservation, the Committee respectfully states as

 follows:



 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’ 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 578      Filed 09/27/24      Page 2 of 3




                                   RESERVATION OF RIGHTS

         1.    It is the Committee’s intention, wherever possible, to work with the Debtors in good

faith to resolve any issues that may arise among the parties, and the Committee understands that

changes to the release mechanisms in the Joint Chapter 11 Plan of Vyaire Medical, Inc. and its

Debtor Affiliates [Docket No. 518] (the “Plan”) are being implemented to address the Committee’s

concerns regarding the mechanism for deeming consent to proposed third party releases. To the

extent those changes are not made, the Committee reserves its right to argue the opt out release

mechanism at the hearing.

         2.    The Committee also provided comments to the Disclosure Statement to Debtors’

counsel to address our disclosure related objections to the Motion, and further reserves all rights

to the extent the comments are not incorporated into the solicitation version of the Disclosure

Statement. A copy of the redline reflecting the Committee’s comments to the Disclosure Statement

is attached hereto as Exhibit A.

         3.    Unless and until these changes are made to the Disclosure Statement and

solicitation materials, the Court should deny approval of the Disclosure Statement on a conditional

basis.

         4.    Furthermore, the Committee does not currently support the Plan and also reserves

all of its rights to object to final approval of the Disclosure Statement and confirmation of the Plan.




                                                  2
           Case 24-11217-BLS   Doc 578    Filed 09/27/24     Page 3 of 3




Dated: September 27, 2024                MCDERMOTT WILL & EMERY LLP
       Wilmington, Delaware
                                         /s/ Maris J. Kandestin
                                         David R. Hurst (I.D. No. 3743)
                                         Maris J. Kandestin (I.D. No. 5294)
                                         The Brandywine Building
                                         1000 N. West Street, Suite 1400
                                         Wilmington, DE 19801
                                         Telephone: (302) 485-3900
                                         Facsimile: (302) 351-8711
                                         E-Mail: dhurst@mwe.com
                                                  mkandestin@mwe.com
                                         - and -

                                         Darren Azman (admitted pro hac vice)
                                         Kristin Going (admitted pro hac vice)
                                         One Vanderbilt Avenue
                                         New York, NY 10017
                                         Telephone: (212) 547-5400
                                         Facsimile: (212) 547-5444
                                         E-Mail: dazman@mwe.com
                                                  kgoing@mwe.com

                                         Counsel to the Official Committee
                                         of Unsecured Creditors




                                     3


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