Pandemic Darlings The pandemic economy, in original documents
Home Source documents Vyaire - Motion to Approve Disclosure Statement and Solicitation Procedures CS Draft 09…

Vyaire - Motion to Approve Disclosure Statement and Solicitation Procedures CS Draft 09.11.24

Date
2024-10-02

Summary

A motion of the debtors in In re Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), in the U.S. Bankruptcy Court for the District of Delaware, filed September 11, 2024 as Doc 520, with a hearing date of October 2, 2024. The debtors ask the court to approve the Disclosure Statement on an interim basis under section 1125 of the Bankruptcy Code, schedule a combined disclosure statement and plan confirmation hearing, and approve solicitation and voting procedures, ballots, notices and a cover letter. The motion sets out a Confirmation Timeline including a Voting Deadline of November 4, 2024 and a Combined Hearing on November 14, 2024. It recounts the June 9, 2024 petition and the Court's approval of the sale of the debtors' two business units. The 38-page motion is signed by Cole Schotz P.C. and Kirkland & Ellis LLP as co-counsel to the debtors.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

                  Case 24-11217-BLS              Doc 520        Filed 09/11/24         Page 1 of 38




                          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)
                                                        )
                                                        )      Hearing Date: October 2, 2024, at 1:30 p.m. (ET)
                                                        )      Obj. Deadline: September 25, 2024, at 4:00 p.m. (ET)

         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
        APPROVAL AND PLAN CONFIRMATION HEARING, (III) APPROVING
      THE SOLICITATION AND NOTICE PROCEDURES, (IV) APPROVING THE
       COMBINED HEARING NOTICE, AND (V) GRANTING RELATED RELIEF

             The above-captioned debtors and debtors in possession (collectively, the “Debtors” and,

each, a “Debtor”) state as follows in support of this motion:2

                                              Preliminary Statement

             1.     The Debtors seek approval of this motion to permit the Debtors to begin solicitation

of votes on the Plan and to combine the hearings on final approval of the Disclosure Statement and

Confirmation of the Plan. Based on the circumstances of these Chapter 11 Cases, the Debtors

believe the expedited solicitation and hearing process proposed herein is reasonable and does not



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.
2
      Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Joint Chapter
      11 Plan of Vyaire Medical, Inc. and Its Debtor Affiliates filed contemporaneously herewith (as may be amended,
      supplemented, or modified from time to time, the “Plan”), as applicable. A detailed description of the Debtors
      and their business, including the facts and circumstances giving rise to the Debtors’ Chapter 11 Cases, is set forth
      in the Declaration of John Bibb, Group Chief Executive Officer of Vyaire Medical, Inc., in Support of Debtors’
      Chapter 11 Petitions and First Day Motions [Docket No. 15] (the “First Day Declaration”).
               Case 24-11217-BLS        Doc 520       Filed 09/11/24    Page 2 of 38




unfairly prejudice any creditors. All creditors and parties in interest with appropriate standing will

be afforded adequate time to review the Plan and Disclosure Statement prior to the objection

deadline. Moreover, this combined process will streamline and facilitate the Debtors’ wind down

of their estates on an expedited basis, minimize the go-forward costs of the chapter 11 process,

and allow for a swift resolution of these Chapter 11 Cases. Accordingly, the Debtors seek

(i) interim approval of the Disclosure Statement to enable the Debtors to immediately begin

soliciting votes on the Plan and (ii) to set a combined hearing on final approval of the Disclosure

Statement and Confirmation of the Plan for November 14, 2024, at 1:30 p.m. (prevailing Eastern

Time).

         2.     During these Chapter 11 Cases, which commenced in early June, the Debtors

continued to engage in an extensive marketing process to obtain the highest and best offers for

the Debtors’ assets and deliver the Debtors’ stakeholders a value-maximizing outcome. This

process culminated in the Court’s approval of the sale of the Debtors’ two business units to separate

buyers. The Debtors and the applicable buyers are working to quickly close those sale transactions.

As a final step to the chapter 11 process, the Plan—together with an integrated Confirmation

schedule—is designed to bring an orderly and efficient conclusion to these Chapter 11 Cases.

Prosecuting the Plan and Disclosure Statement on a combined basis as set forth herein is essential

to that end.

                                         Relief Requested

         3.     The Debtors seek entry of an order, substantially in the form attached hereto as

Exhibit A (the “Order”), granting the following relief and such other relief as is just and proper:

                (a)    approval of the Disclosure Statement for the Joint Chapter 11 Plan of
                       Vyaire Medical, Inc. and Its Debtor Affiliates, substantially in the form
                       attached to the Order as Exhibit 1 (as amended, supplemented, or otherwise
                       modified from time to time, the “Disclosure Statement”), on an interim basis



                                                  2
Case 24-11217-BLS       Doc 520      Filed 09/11/24     Page 3 of 38




       as containing “adequate information” pursuant to section 1125 of the
       Bankruptcy Code;

 (b)   approval of procedures for: (i) soliciting, receiving, and tabulating votes to
       accept or reject the Plan; (ii) voting to accept or reject the Plan; and
       (iii) filing objections to the Plan, substantially in the form attached to the
       Order as Exhibit 2 (the “Solicitation and Voting Procedures”);

 (c)   approval of the form of ballots (collectively, the “Ballots”), substantially in
       the forms attached to the Order as Exhibits 3A and 3B respectively;

 (d)   approval of (i) the form of notice applicable to Holders of Claims that are
       Unimpaired under the Plan and who are, pursuant to section 1126(f) of the
       Bankruptcy Code, conclusively presumed to accept the Plan; (ii) the form
       of notice applicable to Holders of Claims that are Impaired under the Plan
       and who are, pursuant to section 1126(g) of the Bankruptcy Code,
       conclusively deemed to reject the Plan; and (iii) the form of notice
       applicable to Holders of Claims or Interests that are subject to a pending
       objection by the Debtors and who are not entitled to vote the disputed
       portion of such Claim (each, a “Non-Voting Status Notice”), substantially
       in the forms attached to the Order as Exhibits 4, 5, and 6, respectively;

 (e)   approval of the solicitation materials and documents included in the
       solicitation packages (each, a “Solicitation Package”) that will be sent to,
       among others, Holders of Claims entitled to vote to accept or reject the Plan,
       in compliance with rules 3017(d) and 2002(b) of the Federal Rules of
       Bankruptcy Procedure (the “Bankruptcy Rules”);

 (f)   approval of the form of letter that the Debtors will send to Holders of Claims
       entitled to vote to accept or reject the Plan recommending that such parties
       to vote in favor of the Plan, substantially in the form attached to the Order
       as Exhibit 7 (the “Cover Letter”);

 (g)   approval of the form and manner of notice of hearing to be held by the Court
       to consider Confirmation of the Plan (the “Combined Hearing” and, the
       notice thereof, the “Combined Hearing Notice”) pursuant to section 1129
       of the Bankruptcy Code, substantially in the form attached to the Order as
       Exhibit 8;

 (h)   approval of the notice related to the filing of the Plan Supplement,
       substantially in the form attached to the Order as Exhibit 9
       (the “Plan Supplement Notice”);

 (i)   approval of the form of notice to counterparties to Executory Contracts and
       Unexpired Leases that will be assumed or assumed and assigned pursuant
       to the Plan, substantially in the form attached to the Order as Exhibit 10
       (the “Assumption Notice”);



                                 3
                  Case 24-11217-BLS               Doc 520       Filed 09/11/24         Page 4 of 38




                   (j)      approval of the form of notice to counterparties to Executory Contracts and
                            Unexpired Leases that will be rejected pursuant to the Plan, substantially in
                            the form attached to the Order as Exhibit 11 (the “Rejection Notice”);

                   (k)      shortening the periods and notice requirements set forth under rule 9006-1
                            of the Local Rules of Bankruptcy Practice and Procedure of the United
                            States Bankruptcy Court for the District of Delaware (the “Local Rules”)
                            for notice of the Interim Disclosure Statement Hearing in accordance with
                            Bankruptcy Rule 9006(c)(1); and

                   (l)      establishing the following dates and deadlines with respect to Confirmation,
                            subject to modification as necessary (the “Confirmation Timeline”):

          Event                   Date                                         Description
    Conditional          September 25, 2024,       Deadline by which objections to the Disclosure Statement must be
    Disclosure Statement at 4:00 p.m.              filed and served so as to be actually received by the appropriate
    Objection Deadline   (prevailing Eastern       notice parties (the “Conditional Disclosure Statement Objection
                         Time)                     Deadline”)
    Voting Record Date    October 2, 2024          Date for determining (i) which Holders of Claims in the Voting
                                                   Classes, as defined herein, are entitled to vote to accept or reject
                                                   the Plan and (ii) whether Claims have been properly assigned or
                                                   transferred to an assignee under Bankruptcy Rule 3001(e) such that
                                                   the assignee or transferee, as applicable, can vote to accept or reject
                                                   the Plan (the “Voting Record Date”)
    Disclosure Statement October 2, 2024           Date and time of the interim disclosure statement hearing
    Hearing                                        (the “Disclosure Statement Hearing”), subject to the Court’s
                                                   availability
    Solicitation Launch   October 7, 2024 (or as Date for distributing Solicitation Packages, including Ballots, to
                          soon as reasonably      Holders of Claims and Interests entitled to vote to accept or reject
                          practicable thereafter) the Plan (the “Solicitation Deadline”)
    Plan Supplement       October 28, 2024         Date by which the Debtors will File the initial Plan Supplement
    Filing Deadline
    Voting Deadline       November 4, 2024, at     Deadline by which all Ballots must be properly executed,
                          4:00 p.m. (prevailing    completed, and delivered so that they are actually received
                          Eastern Time)            (the “Voting Deadline”) by Omni Agent Solutions, Inc., the notice,
                                                   claims, and solicitation agent retained by the Debtors in these
                                                   Chapter 11 Cases (the “Notice and Claims Agent”)3
    Confirmation          November 4, 2024, at     Deadline by which objections to the Disclosure Statement or the
    Objection Deadline    4:00 p.m. (prevailing    Plan must be filed and served so as to be actually received by the
                          Eastern Time)            appropriate notice parties (the “Objection Deadline”)




3
      An Order authorizing the Debtors to retain and employ Omni Agent Solutions, Inc. to provide noticing and claims
      services and serve as Notice and Claims Agent, was entered by the Court on June 11, 2024 [Docket No. 94].
      An Order authorizing the Debtors to retain and employ Omni Agent Solutions, Inc. to serve as Administrative
      Agent was entered by the Court on July 30, 2024 [Docket No. 334].



                                                            4
               Case 24-11217-BLS             Doc 520     Filed 09/11/24      Page 5 of 38




       Event                  Date                                    Description
 Voting Report Filing November 7, 2024        Date by which the report tabulating the voting on the Plan
 Deadline                                     (the “Voting Report”) shall be Filed
 Confirmation Brief    November 11, 2024      Date by which the Debtors’ will File the brief in support of
 Filing Deadline                              Confirmation (the “Confirmation Brief”)
 Combined Hearing      November 14, 2024,     Date and time of the Disclosure Statement and Confirmation
 Date                  at 1:30 p.m.           Hearing (the “Combined Hearing Date”)
                       (prevailing Eastern
                       Time)


                                        Jurisdiction and Venue

       4.       The United States District Court for the District of Delaware has jurisdiction over

this matter pursuant to 28 U.S.C. §1334, which was referred to the United States Bankruptcy Court

for the District of Delaware (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. The Debtors confirm their consent, pursuant to rule 9013-1(f) of the Local Rules of

Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of

Delaware (the “Local Rules”), to the entry of a final order by the Court in connection with this

motion to the extent that it is later determined that the Court, absent consent of the parties, cannot

enter final orders or judgments in connection herewith consistent with Article III of the United

States Constitution.

       5.       Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409.

       6.       The statutory bases for the relief requested herein are sections 105, 1125, 1126, and

1128 of title 11 of the United States Code, 11 U.S.C. §§ 101–1532 (the “Bankruptcy Code”),

rules 1007, 2002, 3016, 3017, 3018, 3020, and 9006 of the Federal Rules of Bankruptcy Procedure

(the “Bankruptcy Rules”), and Local Rules 1007-1, 3017-1, 3017-2, and 9006-1.




                                                     5
              Case 24-11217-BLS         Doc 520       Filed 09/11/24    Page 6 of 38




                                            Background

I.     General Case Background.

       7.      Vyaire Medical, Inc., together with its direct and indirect subsidiaries

(collectively, “Vyaire” or the “Company”), is a global company focused on developing products

and providing related services for the diagnosis, treatment, and monitoring of various cardiology,

pulmonology, and respiratory health conditions. With a 70-year history of pioneering breathing

technology, the integrated solutions offered by the Company help enable, enhance, and extend

lives. Headquartered in Mettawa, Illinois, Vyaire operates approximately 27 offices and

manufacturing facilities, and employs approximately 950 individuals around the world. The

Company has a global reach, and Vyaire products are available in more than 100 countries. Its

customers are the hospitals, health centers, and private practice facilities delivering life-enhancing

products and services to patients every day.

       8.      On June 9, 2024 (the “Petition Date”), Vyaire Medical, Inc. and certain of its

subsidiaries filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code. The

Debtors are operating their business and managing their property as debtors in possession pursuant

to sections 1107(a) and 1108 of the Bankruptcy Code. On June 11, 2024, the Court entered an

order [Docket No. 84] authorizing the procedural consolidation and joint administration of these

Chapter 11 Cases pursuant to Bankruptcy Rule 1015(b) and Local Rule 1015-1. No request for

the appointment of a trustee or examiner has been made in these Chapter 11 Cases. On June 26,

2024, the United States Trustee for the District of Delaware (the “U.S. Trustee”) appointed an

official committee of unsecured creditors [Docket No. 121] (“the Committee”). No trustee or

examiner has been appointed in these Chapter 11 Cases.

       9.      On July 11, 2024, 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


                                                  6
                Case 24-11217-BLS         Doc 520       Filed 09/11/24     Page 7 of 38




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 (VII) Granting Related Relief [Docket No. 249]

(the “Bidding Procedures Order”). At a hearing on August 30, 2024, the Court approved the Sale

Transactions, and the Sale Orders were entered on September 4, 2024. See Docket Nos. 496 and

497.

II.      The Notice Procedures.

         10.     In an effort to manage the Debtors’ liquidity concerns and efficiently implement

the Sale Transaction and wind-down contemplated by the Plan, the Debtors and their advisors are

proposing a noticing plan that is robust and cost-effective. Specifically, the Debtors will provide

to parties in interest, including parties entitled to vote to accept or reject the Plan, in the following

ways: (a) serving and noticing the Combined Hearing Notice on parties in interest, including

parties entitled to vote; (b) posting the Plan and Disclosure Statement in a conspicuous manner on

the public website of the Notice and Claims Agent; and (c) publishing the Publication Notice

(as defined below) in a nationally recognized and circulated news publication. The Debtors

believe that the Publication Notice provides sufficient notice of the pending approval of

the Disclosure Statement, the Combined Hearing, and the Objection Deadline to entities who will

not otherwise receive notice as provided herein and through the Solicitation Procedures.

         11.     The Debtors will cause the Notice and Claims Agent to serve the Combined

Hearing Notice on, among other parties, Holders of Claims in Classes 4 and 5, the U.S. Trustee,

and all parties that have requested notice pursuant to Bankruptcy Rule 2002. To provide another

layer of notice to parties in interest, the Debtors will also cause the Notice and Claims Agent to

update         the    website      maintained          for    these      Chapter 11        Cases       at


                                                   7
              Case 24-11217-BLS          Doc 520      Filed 09/11/24    Page 8 of 38




https://omniagentsolutions.com/Vyaire to provide instructions for obtaining copies of the Plan and

Disclosure Statement and to advise parties of important dates and deadlines related to the Plan and

Disclosure Statement, including the Voting Record Date, the Voting Deadline, the Objection

Deadline, and the Combined Hearing.

III.   The Solicitation Procedures.

       12.       The Debtors propose that they will commence solicitation of votes on the Plan from

Holders of Claims in Classes 4 and 5 in accordance with the Solicitation Procedures and the

Bankruptcy Code. More specifically, on or before October 7, 2024, or as soon as reasonably

practicable thereafter, the Debtors will cause the Notice and Claims Agent to distribute Solicitation

Packages by email, where available, and otherwise by first-class U.S. mail, to Holders of Claims

in Classes 4 and 5. The Disclosure Statement and Ballots will direct Holders of Claims in Classes

4 and 5 to follow the instructions contained in the Ballots (and described in the Disclosure

Statement) to complete and submit their respective Ballots to cast a vote to accept or reject the

Plan. The Disclosure Statement and applicable Ballot will expressly provide that a Holder of a

Claim seeking to vote on the Plan needs to submit its Ballot so that it is actually received by the

Notice and Claims Agent on or before 4:00 p.m., prevailing Eastern Time, on November 4, 2024,

to be counted.

       13.       Certain other Holders of Claims will not be provided a Solicitation Package because

such Holders are: (a) Unimpaired under, and conclusively presumed to accept, the Plan pursuant

to section 1126(f) of the Bankruptcy Code; or (b) Impaired, entitled to receive no distribution on

account of such Claims under the Plan, and, therefore, deemed to have rejected the Plan pursuant

to section 1126(g) of the Bankruptcy Code.




                                                  8
             Case 24-11217-BLS        Doc 520       Filed 09/11/24     Page 9 of 38




       14.    The Debtors’ procedures and standard assumptions for tabulating Ballots include:

 Votes Not Counted              Any Ballot that is illegible or contains insufficient information
                                 to permit the identification of the Holder of the Claim or
                                 Interest;
                                Any Ballot transmitted by means other than as specifically set
                                 forth in the Ballots;
                                Any Ballot cast by an entity that is not entitled to vote on the
                                 Plan;
                                Any Ballot cast for a Claim listed in the Debtors’ schedules as
                                 contingent, unliquidated, or disputed for which the applicable
                                 bar date has passed and no proof of claim was filed;
                                Any Ballot cast for a Claim that is subject to an objection
                                 pending as of the Voting Record Date (unless temporarily
                                 allowed in accordance with the Order);
                                Any Ballot that was sent to the Debtors, the Debtors’
                                 agents/representatives (other than the Notice and Claims
                                 Agent), or the Debtors’ financial or legal advisors instead of the
                                 Notice and Claims Agent;
                                Any Ballot that is unsigned; and
                                Any Ballot that is not clearly marked to either accept or reject
                                 the Plan or it is marked both to accept and reject the Plan.
 No Vote Splitting              Holders must vote all of their Claims within a particular Class
                                 either to accept or reject the Plan and may not split any votes.
                                 Accordingly, a Ballot that partially rejects and partially accepts
                                 the Plan will not be counted.

IV.    Plan Overview.

       15.    The Plan classifies Holders of Claims or Interests into the following Classes of

Claims and Interests for all purposes, including with respect to voting on the Plan, pursuant to




                                                9
                  Case 24-11217-BLS            Doc 520          Filed 09/11/24       Page 10 of 38




section 1126 of the Bankruptcy Code. The following chart represents the Classes of Claims and

Interests under the Plan:4

    Class                 Claim/Interest                     Status                       Voting Rights
     1         Secured Tax Claims                      Unimpaired            Not Entitled to Vote (Presumed to
                                                                             Accept)
     2         Oher Secured Claims                     Unimpaired            Not Entitled to Vote (Presumed to
                                                                             Accept)
     3         Other Priority Claims                   Unimpaired            Not Entitled to Vote (Presumed to
                                                                             Accept)
     4         First Lien Claims                       Impaired              Entitled to Vote
     5         Second Lien Claims                      Impaired              Entitled to Vote
     6         General Unsecured Claims                Impaired              Not Entitled to Vote (Deemed to Reject)
     7         Intercompany Claims                     Unimpaired /          Not Entitled to Vote (Presumed to Accept
                                                       Impaired              or Deemed to Reject)
     8         Intercompany Interests                  Unimpaired /          Not Entitled to Vote (Presumed to Accept
                                                       Impaired              or Deemed to Reject)
     9         Existing Equity Interests               Impaired              Not Entitled to Vote (Deemed to Reject)
     10        510(b) Claims                           Impaired              Not Entitled to Vote (Deemed to Reject)


            16.      The Plan provides for the following distributions to be made to the Debtors’

creditors and equity holders:

     Class                   Claim/Interest                        Treatment of Claim/Equity Interest
                                                       Except to the extent that a Holder of an Allowed Secured Tax
                                                       Claim agrees to less favorable treatment, in full and final
                                                       satisfaction, compromise, settlement, and release of and in
                                                       exchange for such Secured Tax Claim, on or as soon as
                                                       reasonably practicable after the later to occur of (i) the
                                                       Effective Date and (ii) the date such Claim becomes Allowed
                                                       (or as otherwise set forth in the Plan), each Holder of a
     Class 1       Secured Tax Claims                  Secured Tax Claim shall receive, at the option of the Plan
                                                       Administrator: (i) payment in full in Cash of such Holder’s
                                                       Allowed Secured Tax Claim and (ii) equal semi-annual Cash
                                                       payments commencing as of the Effective Date or as soon as
                                                       reasonably practicable thereafter and continuing for five
                                                       years, in an aggregate amount equal to such Allowed Secured
                                                       Tax Claim, together with interest at the applicable non-default
                                                       rate under non-bankruptcy law, subject to the option of the

4
     The Plan constitutes a separate chapter 11 plan for each Debtor. The classifications set forth in Classes 1–10 shall
     be deemed to apply to each Debtor, as applicable. The Debtors reserve the right to modify the Plan in accordance
     with the terms thereof, including the right to withdraw the Plan as to an individual Debtor at any time before
     the Confirmation Date.



                                                           10
          Case 24-11217-BLS         Doc 520     Filed 09/11/24         Page 11 of 38




Class              Claim/Interest                   Treatment of Claim/Equity Interest
                                        Plan Administrator to prepay the entire amount of such
                                        Allowed Secured Tax Claim during such time period.
                                        Except to the extent that a Holder of an Allowed Other
                                        Secured Claim agrees to less favorable treatment, in full and
                                        final satisfaction, compromise, settlement, and release of and
                                        in exchange for such Allowed Other Secured Claim, on or as
                                        soon as reasonably practicable after the Effective Date, each
                                        Holder of an Allowed Other Secured Claim shall receive, at
                                        the option of the applicable Debtors or Wind Down Debtors:
Class 2   Other Secured Claims          (i) payment in full in Cash of such Holder’s Allowed Other
                                        Secured Claim; (ii) the collateral securing such Holder’s
                                        Allowed Other Secured Claim; (iii) Reinstatement of such
                                        Holder’s Allowed Other Secured Claim pursuant to section
                                        1124 of the Bankruptcy Code; or (iv) such other treatment
                                        rendering such Holder’s Allowed Other Secured Claim
                                        Unimpaired in accordance with section 1124 of the
                                        Bankruptcy Code.
                                        Except to the extent that a Holder of an Allowed Other
                                        Priority Claim agrees to less favorable treatment, in full and
                                        final satisfaction, compromise, settlement, and release of and
                                        in exchange for such Allowed Other Priority Claim, on or as
                                        soon as reasonably practicable after the later to occur of (i) the
Class 3   Other Priority Claims         Effective Date and (ii) the date such Claim becomes Allowed
                                        (or as otherwise set forth in the Plan), each Holder of an
                                        Allowed Administrative, Allowed Priority Tax Claim, or
                                        Allowed Other Claims, will either be satisfied in full, in Cash,
                                        or otherwise receive treatment consistent with the provisions
                                        of section 1129(a)(9) of the Bankruptcy Code.
                                        Except to the extent that a Holder of an Allowed First Lien
                                        Claim agrees to less favorable treatment, in full and final
                                        satisfaction, compromise, settlement, and release of and in
                                        exchange for such Allowed First Lien Claim, on or as soon as
                                        reasonably practicable after the Effective Date, each Holder
                                        of an Allowed First Lien Claim shall receive solely its pro rata
Class 4   First Lien Claims
                                        share of Distributable Value, if any, after all Allowed DIP
                                        Claims have been satisfied in full in accordance with Article
                                        II.C; provided, however, that in no event shall any Holder of
                                        a First Lien Claim receive, on account of such Claim, a
                                        recovery greater than 100% of the Allowed amount of such
                                        Claim.
                                        Except to the extent that a Holder of an Allowed Second Lien
                                        Claim agrees to less favorable treatment, in full and final
                                        satisfaction, compromise, settlement, and release of and in
                                        exchange for such Allowed Second Lien Claim, on or as soon
                                        as reasonably practicable after the Effective Date, each
                                        Holder of an Allowed Second Lien Claim shall receive solely
Class 5   Second Lien Claims
                                        its pro rata share of Distributable Value, if any, after all
                                        Allowed DIP Claims and all Allowed Claims in Class 4 have
                                        been satisfied in full; provided, however, that in no event shall
                                        any Holder of Second Lien Claim receive, on account of such
                                        Claim, a recovery greater than 100% of the Allowed amount
                                        of such Claim.



                                           11
                Case 24-11217-BLS           Doc 520      Filed 09/11/24        Page 12 of 38




      Class              Claim/Interest                      Treatment of Claim/Equity Interest
                                                 On the Effective Date, each General Unsecured Claim shall
                                                 be discharged and released, and each Holder of a General
     Class 6    General Unsecured Claims         Unsecured Claim shall not receive or retain any distribution,
                                                 property, or other value on account of such General
                                                 Unsecured Claim.
                                                 Each Allowed Intercompany Claim, to the extent not assumed
                                                 pursuant to the terms of any Sale Order, shall, at the election
                                                 of the Debtors or Wind-Down Debtors, be (a) Reinstated, (b)
     Class 7    Intercompany Claims              converted to equity, (c) otherwise set off, settled, distributed,
                                                 contributed, cancelled, or released; or (d) otherwise addressed
                                                 at the option of the Debtors or Wind-Down Debtors without
                                                 any distribution on account of such Intercompany Claims.
                                                 Allowed Intercompany Interests, to the extent not assumed
                                                 pursuant to the terms of any Sale Order, shall, at the election
                                                 of the Debtors or Wind-Down Debtors, be (a) Reinstated or
     Class 8    Intercompany Interests           (b) set off, settled, addressed, distributed, contributed,
                                                 merged, cancelled, or released, or (c) otherwise addressed at
                                                 the option of the Wind-Down Debtors or Debtors without any
                                                 distribution on account of such Intercompany Interests.
                                                 On the Effective Date, all Existing Equity Interests shall be
                                                 cancelled, released, and extinguished, and will be of no
     Class 9    Existing Equity Interests
                                                 further force or effect. Holders of Interests shall receive no
                                                 recovery or distribution on account of their Interests.
                                                 On the Effective Date, all Section 510(b) Claims shall be
                                                 cancelled, released, and extinguished, and will be of no
     Class 10   510(b) Claims                    further force or effect. Holders of Section 510(b) Claims shall
                                                 receive not recovery or distribution on account of such
                                                 Claims.


          17.     Based on the foregoing (and as discussed in greater detail herein), the Debtors are

proposing to solicit votes to accept or reject the Plan from Holders of Claims in Classes 4 and 5

(each, a “Voting Class” and, collectively, the “Voting Classes”). The Debtors are not proposing

to solicit votes from Holders of Claims or Interests in Classes 1, 2, 3, 6, 7, 8, 9 or 10 (each, a “Non-

Voting Class” and, collectively, the “Non-Voting Classes”).

                                             Basis for Relief

I.        The Court Should Approve the Disclosure Statement on an Interim and Final Basis.

          18.     The Debtors submit that the Disclosure Statement contains adequate information as

defined in section 1125 of the Bankruptcy Code. Accordingly, the Debtors request that the Court

approve the Disclosure Statement (a) on an interim basis to permit the Debtors to use it in the


                                                    12
             Case 24-11217-BLS         Doc 520        Filed 09/11/24   Page 13 of 38




solicitation process as described herein and (b) on a final basis at the Combined Hearing as part of

the order confirming the Plan.

       A.      The Standard for Approval of the Disclosure Statement Has Been Satisfied.

       19.     Pursuant to section 1125 of the Bankruptcy Code, the proponent of a proposed

chapter 11 plan must provide “adequate information” regarding that plan to holders of impaired

claims and interests entitled to vote on the plan. Specifically, section 1125(a)(1) of the Bankruptcy

Code provides, in relevant part, as follows:

               “[A]dequate information” means information of a kind, and in
               sufficient detail, as far as is reasonably practicable in light of the
               nature and history of the debtor and the condition of the debtor’s
               books and records, including a discussion of the potential material
               Federal tax consequences of the plan to the debtor, any successor to
               the debtor, and a hypothetical investor typical of the holders of
               claims or interests in the case, that would enable such a hypothetical
               investor of the relevant class to make an informed judgment about
               the plan.

       20.     The primary purpose of a disclosure statement is to provide all material information

that creditors and interest holders affected by a proposed plan need to make an informed decision

regarding whether or not to vote for the plan. See, e.g., Century Glove, Inc. v. First Am. Bank of

N.Y., 860 F.2d 94, 100 (3d Cir. 1988) (“[Section] 1125 seeks to guarantee a minimum amount of

information to the creditor asked for its vote.”); In re Monnier Bros., 755 F.2d 1336, 1342 (8th Cir.

1985) (“The primary purpose of a disclosure statement is to give the creditors the information they

need to decide whether to accept the plan.”); In re Phoenix Petrol. Co., 278 B.R. 385, 392 (Bankr.

E.D. Pa. 2001) (“[T]he general purpose of the disclosure statement is to provide ‘adequate

information’ to enable ‘impaired’ classes of creditors and interest holders to make an informed

judgment about the proposed plan and determine whether to vote in favor of or against that plan.”);

In re Unichem Corp., 72 B.R. 95, 97 (Bankr. N.D. Ill. 1987) (“The primary purpose of a disclosure

statement is to provide all material information which creditors and equity security holders affected


                                                 13
             Case 24-11217-BLS          Doc 520        Filed 09/11/24    Page 14 of 38




by the plan need in order to make an intelligent decision whether to vote for or against the plan.”).

Congress intended that such informed judgments would be needed to both negotiate the terms of,

and vote on, a plan of reorganization. See Century Glove, Inc., 860 F.2d at 100.

       21.     “Adequate information” is a flexible standard, based on the facts and circumstances

of each case. 11 U.S.C. § 1125(a)(1) (stating that “‘adequate information’ means information of

a kind, and in sufficient detail, as far as is reasonably practicable in light of the nature and history

of the debtor and the condition of the debtor’s books and records”); see also Oneida Motor Freight,

Inc. v. United Jersey Bank, 848 F.2d 414, 417 (3d Cir. 1988) (“From the legislative history of

§ 1125 we discern that adequate information will be determined by the facts and circumstances of

each case.”); First Am. Bank of N.Y. v. Century Glove, Inc., 81 B.R. 274, 279 (D. Del. 1988) (noting

that adequacy of disclosure for a particular debtor will be determined based on how much

information is available from outside sources); S. Rep. No. 95-989, at 121 (1978), as reprinted in

1978 U.S.C.C.A.N. 5787, 5907 (stating that “the information required will necessarily be governed

by the circumstances of the case”).

       22.     Courts in the Third Circuit acknowledge that determining what constitutes

“adequate information” for the purpose of satisfying section 1125 of the Bankruptcy Code resides

within the broad discretion of the court. See, e.g., In re River Village Assoc., 181 B.R. 795, 804

(E.D. Pa. 1995) (“[T]he Bankruptcy Court is thus given substantial discretion in considering the

adequacy of a disclosure statement.”); In re Phoenix Petrol., Co., 278 B.R. at 393 (same).

Accordingly, the determination of whether a disclosure statement contains adequate information

must be made on a case-by-case basis, focusing on the unique facts and circumstances of each

case. See In re Phoenix Petrol. Co., 278 B.R. at 393; In re PC Liquidation Corp., 383 B.R. 856,

865 (E.D.N.Y. 2008) (“The standard for disclosure is, thus, flexible and what constitutes ‘adequate




                                                  14
             Case 24-11217-BLS           Doc 520       Filed 09/11/24    Page 15 of 38




disclosure’ in any particular situation is determined on a case-by-case basis, with the determination

being largely within the discretion of the bankruptcy court.” (internal citations omitted));

In re Lisanti Foods, Inc., 329 B.R. 491, 507 (Bankr. D. N.J. 2005) (stating that “[t]he information

required will necessarily be governed by the circumstances of the case.”).

       23.     In making a determination as to whether a disclosure statement contains adequate

information as required by section 1125 of the Bankruptcy Code, courts typically look for

disclosures related to topics such as:

               a.      the events that led to the filing of a bankruptcy petition;

               b.      the relationship of the debtor with its affiliates;

               c.      a description of the available assets and their value;

               d.      the debtor’s anticipated future performance;

               e.      the source of information stated in the disclosure statement;

               f.      the debtor’s condition while in chapter 11;

               g.      claims asserted against the debtor;

               h.      the estimated return to creditors under a chapter 7 liquidation of the debtor;

               i.      the future management of the debtor;

               j.      the chapter 11 plan or a summary thereof;

               k.      financial information, valuations, and projections relevant to a creditor’s
                       decision to accept or reject the chapter 11 plan;

               l.      information relevant to the risks posed to creditors under the plan;

               m.      the actual or projected realizable value from recovery of preferential or
                       otherwise avoidable transfers;




                                                  15
                 Case 24-11217-BLS           Doc 520        Filed 09/11/24        Page 16 of 38




                  n.        litigation likely to arise in a nonbankruptcy context; and

                  o.        tax attributes of the debtor.

See In re U.S. Brass Corp., 194 B.R. 420, 424–25 (Bankr. E.D. Tex. 1996); see also In re Scioto

Valley Mortg. Co., 88 B.R. 168, 170–71 (Bankr. S.D. Ohio 1988) (listing the factors courts have

considered in determining the adequacy of information provided in a disclosure statement);

In re Metrocraft Pub. Serv., Inc., 39 B.R. 567, 568 (Bankr. N.D. Ga. 1984) (same). Disclosure

regarding all topics is not necessary in every case. See In re U.S. Brass Corp., 194 B.R. at 424;

see also In re Phoenix Petrol., 278 B.R. at 393 (“[C]ertain categories of information which may

be necessary in one case may be omitted in another; no one list of categories will apply in every

case.”).

           24.    The Disclosure Statement provides “adequate information” to allow Holders of

Claims in the Voting Classes to make informed decisions about whether to vote to accept or reject

the Plan. Specifically, the Disclosure Statement contains a number of categories of information

that courts consider “adequate information,” including:

                                                                                               Location in
                  Category                                  Description
                                                                                          Disclosure Statement
                                             A description of the procedures for
 Solicitation and Voting Procedures          soliciting votes to accept or reject the     Article X
                                             Plan and voting on the Plan.
                                             An overview of the Debtors’ corporate
 Debtors’ Corporate History, Structure,      history,      business     operations,
                                                                                          Article V and Article VI
 and Business Overview                       organizational structure, and capital
                                             structure.
                                             An overview of the Debtors’ out-of-
 Events Leading to these Chapter 11 Cases    court restructuring efforts in response to   Article VII
                                             liquidity constraints.
                                             A summary of the course of events in
 Events of the Chapter 11 Cases              these Chapter 11 Cases, including the        Article VIII
                                             sale process.
                                             Confirmation procedures and statutory
 Confirmation of the Plan                    requirements for Confirmation and            Article XI
                                             Consummation of the Plan.




                                                       16
                Case 24-11217-BLS        Doc 520       Filed 09/11/24      Page 17 of 38




                                                                                        Location in
                 Category                              Description
                                                                                   Disclosure Statement
                                         An analysis of the liquidation value of   Exhibit B to the
 Liquidation Analysis
                                         the Debtors.                              Disclosure Statement
                                         Certain risks associated with the
                                         Debtors’ businesses, as well as certain
                                         risks associated with forward-looking
 Risk Factors                                                                      Article IX
                                         statements and an overall disclaimer as
                                         to the information provided by and set
                                         forth in the Disclosure Statement.
 Material United States Federal Income   A description of certain U.S. federal
 Tax Consequences of the Plan            income tax law consequences of the        Article XII
                                         Plan.
                                         A recommendation by the Debtors that
 Recommendation                          Holders of Claims in the Voting Classes   Article XIII
                                         should vote to accept the Plan.


       25.       Based on the foregoing, the Debtors respectfully submit that the Disclosure

Statement complies with all aspects of section 1125 of the Bankruptcy Code and addresses the

information set forth above in a manner that provides adequate information to Holders of Claims

entitled to vote to accept or reject the Plan. Accordingly, the Debtors submit that the Disclosure

Statement contains “adequate information” and, therefore, should be approved on an interim basis

immediately and on a final basis at the Combined Hearing.

       26.       Courts in this district and others have approved the adequacy of the Disclosure

Statement on an interim basis. See, e.g., In re Sientra, Inc., No. 24-10245 (JTD) (Bankr. D. Del.

Apr. 9, 2024) (approving disclosure statement on an interim basis); In re PGX Holdings, Inc.,

No. 23-10718 (CTG) (Bankr. D. Del. Jul. 21, 2023) (same); In re Town Sports Int’l, LLC,

No. 20˗12168 (CSS) (Bankr. D. Del. Nov. 3, 2020) (same); In re TNT Crane & Rigging, Inc.,

No. 20-11982 (BLS) (Bankr. D. Del. Aug. 25, 2020); In re RGN-Group Holdings, LLC, No. 20-

11961 (BLS) (Bankr. D. Del. Aug. 17, 2020) (same).




                                                  17
              Case 24-11217-BLS          Doc 520        Filed 09/11/24     Page 18 of 38




       B.         The Disclosure Statement Provides Sufficient Notice of Injunction, Release,
                  and Exculpation Provisions in the Plan.

       27.        Bankruptcy Rule 3016(c) requires that, if a plan provides for an injunction against

conduct not otherwise enjoined under the Bankruptcy Code, the plan and disclosure statement must

describe, in specific and conspicuous language, the acts to be enjoined and the entities subject to

the injunction.

       28.        Additionally, Local Rule 3017-2(c)(ii) requires a debtor to “(A) recite whether the

proposed form of order and/or plan of liquidation contains any provisions of the type indicated

below and (B) identify the location of any such provision in the proposed form of order and/or

plan of liquidation.” In satisfaction of Local Rule 3017-2(c)(ii), the Debtors state as follows:

       29.        Article IV.N of the Plan provides for an exemption under the Bankruptcy Code

from certain taxes and fees under section 1146 of the Bankruptcy Code.

       30.        In addition, Article VIII of the Plan and Article IV.D.5 of the Disclosure Statement

describe in detail the entities subject to an injunction under the Plan and the acts that they are

enjoined from pursuing.        Further, the operative language in Article VIII of the Plan and

Article IV.D.5 of the Disclosure Statement is in bold font, making it conspicuous to anyone who

reads it.    Moreover, Article VIII of the Plan and Article IV.D.2 and Article IV.D.3 of

the Disclosure Statement describe in detail the entities subject to or providing a release under

the Plan and the Claims and Causes of Action so released.                Article VIII of the Plan and

Article IV.D.4 of the Disclosure Statement also describe in detail the entities entitled to

exculpation under the Plan. Each of the foregoing sections is set forth conspicuously in bold font.

Accordingly, the Debtors respectfully submit that the Disclosure Statement complies with

Bankruptcy Rule 3016(c) and Local Rule 3017-2(c)(ii) by conspicuously describing the conduct

and parties enjoined, released, or exculpated by the Plan.



                                                   18
                 Case 24-11217-BLS              Doc 520         Filed 09/11/24        Page 19 of 38




II.       The Court Should Enter an Order Scheduling the Combined Hearing.

          31.      Section 1128 of the Bankruptcy Code provides that “[a]fter notice, the court shall

hold a hearing on confirmation of a plan” and that “[a] party in interest may object to confirmation

of a plan.” 11 U.S.C. § 1128; see also Fed. R. Bankr. P. 3017(c).5

          32.      Local Rule 3017-2 permits a combined hearing to consider approval of a disclosure

statement and confirmation of a chapter 11 plan. This Local Rule sets forth the following,

non-exhaustive situations where a debtor may appropriately seek to have a combined hearing:

                   (i)      The plan proposes to treat as unimpaired (x) all classes of unsecured claims,
                            and (y) all classes of interest in any debtor that is a public company;

                   (ii)     The debtor(s), in the aggregate, have less than fifty general unsecured
                            creditors; the proposed plan does not seek non-consensual
                            releases/injunctions with respect to the claims creditors may hold against
                            non-debtor parties; none of the debtor(s) are public companies, or the
                            classes of interest in any debtor that is a public company public are
                            unimpaired;

                   (iii)    The proposed plan is a liquidating plan; general unsecured creditors are not
                            entitled to vote on the plan because they are deemed to reject it; the plan
                            does not seek any form of release or injunction in favor of non-debtor parties
                            from creditors or interest holders in classes that are deemed to reject the
                            plan; and

                   (iv)     The proposed plan is a liquidating plan in which all or substantially all of
                            the assets of the debtor(s) were or will be liquidated pursuant to a sale under
                            11 U.S.C. § 363; the plan does not seek non-consensual releases/injunctions
                            with respect to claims creditors may hold against non-debtor parties; and
                            the debtor(s)’s combined assets to be distributed pursuant to the proposed
                            plan are estimated, in good faith, to be worth less than $25 million
                            (excluding causes of action).

          33.      The Debtors submit that approval of the Combined Hearing is appropriate in this

case under Local Rule 3017-2(a)(iv) because, (i) substantially all of the Debtors’ assets will be

sold pursuant to a sale under section 363 of the Bankruptcy Code and any remaining assets will be


5
      Bankruptcy Rule 3017(c) provides that “[o]n or before approval of the disclosure statement, the court . . . may fix
      a date for the hearing on confirmation.” Fed R. Bankr. P. 3017(c).



                                                           19
             Case 24-11217-BLS         Doc 520        Filed 09/11/24   Page 20 of 38




administered or liquidated under the Plan, (ii) the Plan does not seek nonconsensual releases or

injunctions with respect to claims creditors may hold against non-Debtor parties, and

(iii) the Debtors’ combined assets to be distributed pursuant to the proposed Plan, after the section

363 sale, are estimated, in good faith, to be worth less than $25 million (excluding causes of

action).

       34.     Nevertheless, in the event that the Court determines that the Combined Hearing

does not qualify under Local Rule 3017-2, the Debtors respectfully request that the Court grant the

relief requested by this motion pursuant to section 105 of the Bankruptcy Code. Section 105 of

the Bankruptcy Code expressly authorizes the Court to “issue an order . . . that . . . provides that

the hearing on approval of the disclosure statement may be combined with the hearing on

confirmation of the plan” where the court deems a combined hearing to be “appropriate to ensure

the case is handled expeditiously and economically.” See 11 U.S.C. § 105(d)(2)(B)(vi); see also

In re Gulf Coast Oil Corp., 404 B.R. 407, 425 (Bankr. S.D. Tex. 2009) (“Section 1125(f)

authorizes combined plans and disclosure statements in small business cases and § 105(d)

authorizes the court to combine them in other cases.”); In re Luminent Mortg. Cap. Inc., No. 08-

21389 (Bankr. D. Md. May 15, 2009). Pursuant to this authority, Courts in this District have

combined hearings on approval of disclosure statements and confirmation of plans in Chapter 11

Cases. See, e.g., In re Sientra, Inc., No. 24-10245 (JTD) (Bankr. D. Del. Apr. 9, 2024) (scheduling

combined hearing on approval of disclosure statement and confirmation of plan); In re PGX

Holdings, Inc., No. 23-10718 (CTG) (Bankr. D. Del. Jul. 21, 2023) (same); In re Town Sports Int’l,

LLC, No. 20˗12168 (CSS) (Bankr. D. Del. Nov. 3, 2020); In re TNT Crane & Rigging, Inc.,

No. 20-11982 (BLS) (Bankr. D. Del. Aug. 25, 2020); In re RGN-Group Holdings, LLC, No. 20-

11961 (BLS) (Bankr. D. Del. Aug. 17, 2020) (same).




                                                 20
              Case 24-11217-BLS          Doc 520        Filed 09/11/24    Page 21 of 38




        35.     Consistent with the foregoing authority, the Debtors respectfully request that the

Court consolidate its approval of the Disclosure Statement and Confirmation of the Plan at the

single Combined Hearing and enter an order scheduling the Combined Hearing for

November 14, 2024, at 1:30 p.m. (prevailing Eastern Time).

III.    The Court Should Approve the Procedures for Confirming the Plan.

        A.      Scheduling the Combined Hearing, the Objection Deadline, and Shortening
                Certain Notice Requirements Related Thereto Is Reasonable and
                Appropriate.

        36.     Bankruptcy Rule 3017(a) provides that “the court shall hold a hearing on at least

28 days’ notice to the debtor, creditors, equity security holders and other parties in interest . . . to

consider the disclosure statement and any objections or modifications thereto.” Local Rule

9006-1(c)(i) provides that “voting procedures motions filed pursuant to Local Rule 3017-1(b) must

be filed at least twenty-one (21) days prior to the hearing date.” Section 1128(a) of the Bankruptcy

Code provides that “[a]fter notice, the court shall hold a hearing on confirmation of a plan.” Also,

the Court may combine the hearing on the adequacy of the Disclosure Statement and the hearing

to confirm the Plan. See 11 U.S.C. § 105(d)(2)(B)(vi).

        37.     Similarly, Bankruptcy Rule 2002(b) provides that notice shall be given to “the

debtor, the trustee, all creditors and indenture trustees [of] not less than 28 days . . . by mail of the

time fixed for filing objections and the hearing to consider approval of a disclosure statement . . . .”

        38.     A court may, however, shorten such notice periods pursuant to Bankruptcy

Rule 9006(c) for cause shown. Specifically, Bankruptcy Rule 9006(c)(1) provides that “when an

act is required or allowed to be done at or within a specified time by these rules or by a notice

given thereunder or by order of the court, the court for cause shown may in its discretion with or

without motion or notice order the period reduced.”




                                                   21
             Case 24-11217-BLS         Doc 520       Filed 09/11/24   Page 22 of 38




       39.     The Debtors request that the Court schedule a hearing to consider interim approval

of the Disclosure Statement on October 2, 2024, schedule the Solicitation Launch for October 7,

2024, or as soon as reasonably practicable thereafter, fix the Objection Deadline at 4:00 p.m.,

prevailing Eastern Time, on November 4, 2024, and schedule a hearing to consider final approval

of the Disclosure Statement and Confirmation of the Plan on November 14, 2024, at 1:30 p.m.

(prevailing Eastern Time), in compliance with the requirements of Bankruptcy Rules 2002(b) and

3017(a). The Debtors also request that the Court require that objections to the Disclosure

Statement or Confirmation of the Plan must: (a) be in writing; (b) comply with the Bankruptcy

Rules and the Local Rules; (c) state the name and address of the objecting party and the amount

and nature of the claim or interest beneficially owned by such entity; (d) state with particularity

the legal and factual basis for such objections, and, if practicable, a proposed modification to the

Plan that would resolve such objections; and (e) be filed with the Court with proof of service

thereof and served upon the applicable notice parties so as to be actually received by the Objection

Deadline.

       40.     Courts in this district have held combined hearings on approval of disclosure

statements and confirmation of plans in Chapter 11 Cases that were neither small business cases

nor prepackaged cases but otherwise complied with Local Rule 3017-2. See, e.g., In re Sientra,

Inc., No. 24-10245 (JTD) (Bankr. D. Del. Apr. 9, 2024); In re PGX Holdings, Inc., No. 23-10718

(CTG) (Bankr. D. Del. Jul. 21, 2023) (same); In re Town Sports Int’l, LLC, No. 20-12168 (CSS)

(Bankr. D. Del. Nov. 3, 2020); In re TNT Crane & Rigging, Inc., No. 20-11982 (BLS) (Bankr. D.

Del. Aug. 25, 2020); In re RGN-Group Holdings, LLC, No. 20-11961 (BLS) (Bankr. D. Del.

Aug. 17, 2020).




                                                22
             Case 24-11217-BLS         Doc 520        Filed 09/11/24   Page 23 of 38




       41.     The Debtors submit that a combined hearing will streamline and expedite the

Confirmation process, which will inure directly to the benefit of the Debtors’ estates and their

creditors by hastening the implementation of the Plan and limiting the amount of time the Debtors

remain in chapter 11. Exiting chapter 11 as expeditiously and efficiently as possible is paramount

to the Debtors’ success. Any adverse effects of the chapter 11 filings upon the Debtors’ businesses

and going-concern value will be minimized, and the benefit to creditors maximized, through

prompt distributions and the reduction of administrative expenses of the estate. Furthermore, a

combined hearing will spare the Debtors from additional administrative expenses associated with

a two-stage process and promote judicial efficiency and economy. Therefore, the Debtors hereby

respectfully request entry of the Order, pursuant to section 105(d)(2)(B)(vi) of the Bankruptcy

Code, setting a date for the Combined Hearing at which the Bankruptcy Court will consider the

adequacy of the Disclosure Statement and Confirmation of the Plan.

       B.      The Court Should Approve the Procedures for Filing Objections to the Plan.

       42.     The Debtors request that the Court direct the manner in which parties in interest

may object to Confirmation of the Plan. Pursuant to Bankruptcy Rule 3020(b)(1), objections to

confirmation of a plan must be filed and served “within a time fixed by the court.” Pursuant to

Local Rule 3017-2(f), the objection deadline for a combined confirmation hearing under the Local

Rules typically must be at least thirty-eight (38) days from the date of entry of the order approving

a disclosure statement on an interim basis and establishing voting procedures. See Del. Bankr.

L.R. 3017-2(f).

       43.     The Debtors request that the Court establish November 4, 2024, at 4:00 p.m.

(prevailing Eastern Time) as the Objection Deadline by which objections to the Disclosure

Statement or the Plan, if any, must be filed and served. Such date is reasonable, as the Plan will

have been on file since September 11, 2024, providing creditors and parties in interest with 54 days


                                                 23
             Case 24-11217-BLS          Doc 520       Filed 09/11/24    Page 24 of 38




to review and analyze the Plan prior to the Objection Deadline. Moreover, the proposed Objection

Deadline is seven days after the proposed deadline to file the Plan Supplement and seven days

before the proposed Combined Hearing.

       44.     The Debtors further request that objections to Confirmation of the Plan or requests

for modifications to the Plan, if any, must:

               a.      be in writing;

               b.      conform to the Bankruptcy Rules, the Local Rules, and any orders of the
                       Court;

               c.      state, with particularity, the legal and factual basis for the objection and, if
                       practicable, a proposed modification to the Plan (or related materials) that
                       would resolve such objection; and

               d.      be filed with the Court (contemporaneously with a proof of service) upon
                       the applicable notice parties so to be actually received on or before the
                       Objection Deadline of November 4, 2024, at 4:00 p.m., prevailing Eastern
                       Time.

       45.     The Debtors believe that the proposed process will afford the Court, the Debtors,

and other parties in interest reasonable time to consider any objections and proposed modifications

prior to the Combined Hearing.

IV.    The Court Should Approve the Solicitation and Voting Procedures, Including the
       Voting and Tabulation Procedures, the Solicitation Package, and the Timeline for
       Soliciting Votes on the Plan.

       A.      The Standard for Approval of Voting and Tabulation Procedures.

       46.     Section 1126(c) of the Bankruptcy Code provides that:

               A class of claims has accepted a plan if such plan has been accepted
               by creditors, other than any entity designated under section (e) of
               this section, that hold at least two-thirds in amount and more than
               one-half in number of the allowed claims of such class held by




                                                 24
             Case 24-11217-BLS          Doc 520        Filed 09/11/24   Page 25 of 38




               creditors, other than any entity designed under subsection (e) of this
               section, that have accepted or rejected the plan.

Additionally, Bankruptcy Rule 3018(c) provides, in part, that “[a]n acceptance or rejection [of a

plan] shall be in writing, identify the plan or plans accepted or rejected, be signed by the creditor

or equity security holder or an authorized agent and conform to the appropriate Official Form.”

Consistent with these requirements, the Debtors propose to use the Solicitation and Voting

Procedures, which procedures include specific voting and tabulation requirements and processes

(the “Voting and Tabulation Procedures”), as follows.

       B.      Completion of Ballots.

       47.     To facilitate the process of tabulating all votes received, the Debtors propose that a

Ballot be counted in determining the acceptance or rejection of the Plan only if it satisfies certain

criteria. Specifically, the Voting and Tabulation Procedures provide that the Debtors not count a

Ballot if, among other things: (1) it is illegible or contains insufficient information to permit the

identification of the Holder of the Claim or Interest; (2) it was transmitted by means other than as

specifically set forth in the ballots; (3) it was cast by an entity that is not entitled to vote on the

Plan; (4) it was cast for a Claim listed in the Debtors’ schedules as contingent, unliquidated, or

disputed for which the applicable bar date has passed and no proof of claim was filed; (5) it was

cast for a Claim that is subject to an objection pending as of the Voting Record Date (unless

temporarily allowed in accordance with the Order); (6) it was sent to the Debtors, the Debtors’

agents/representatives (other than the Notice and Claims Agent), or the Debtors’ financial or legal

advisors instead of the Notice and Claims Agent; (7) it is unsigned; or (8) it is not clearly marked

to either accept or reject the Plan or it is marked both to accept and reject the Plan. Further, the

Debtors, subject to a contrary order of the Court, may waive any defects or irregularities as to any




                                                  25
             Case 24-11217-BLS         Doc 520        Filed 09/11/24   Page 26 of 38




particular Ballot at any time, either before or after the close of voting, and any such waivers shall

be documented in the Voting Report.

       C.      General Ballot Tabulation and Voting Procedures.

       48.     The proposed Voting and Tabulation Procedures set forth specific criteria with

respect to the general tabulation of Ballots and voting procedures applicable to Holders of Claims

and Interests. The Debtors believe that the proposed Voting and Tabulation Procedures will

facilitate the Plan Confirmation process. Specifically, the procedures will clarify any obligations

of Holders of Claims and Interests entitled to vote to accept or reject the Plan and will create a

straightforward process by which the Debtors can determine whether they have satisfied the

numerosity requirements of section 1126(c) of the Bankruptcy Code. Accordingly, the Debtors

submit that the Voting and Tabulation Procedures are in the best interests of their estates, Holders

of Claims and Interests, and other parties in interest, and that good cause supports the relief

requested herein.

       D.      The Court Should Approve the Forms of the Ballots.

       49.     In accordance with Bankruptcy Rule 3018(c), the Debtors have prepared and

customized the Ballots. Although based on Official Form No. 314, the Ballots have been modified

to (a) address the particular circumstances of these Chapter 11 Cases, and (b) include certain

additional information that is relevant and appropriate for Claims in the Voting Classes.

The proposed Ballots for the Voting Classes are annexed as Exhibits 3A and 3B to the Order.

The Debtors respectfully submit that the forms of the Ballots comply with Bankruptcy

Rule 3018(c) and, therefore, should be approved.




                                                 26
             Case 24-11217-BLS         Doc 520        Filed 09/11/24   Page 27 of 38




       E.      The Court Should Approve the Form and Distribution of the Solicitation
               Packages and Cover Letter to Parties Entitled to Vote on the Plan.

       50.     Bankruptcy Rule 3017(d) specifies the materials to be distributed to holders of

allowed claims or equity interests upon approval of a disclosure statement, including the plan or a

court-approved summary of the plan, the disclosure statement approved by the court, and notice

of the time within which acceptances and rejections of the plan may be filed.

       51.     In accordance with this requirement, the Debtors propose to send the Solicitation

Packages to provide Holders of Claims in the Voting Classes with the information they need to be

able to make informed decisions with respect to how to vote on the Plan. Specifically, on or before

the Solicitation Deadline, the Debtors will cause the Solicitation Packages to be distributed by

email, where available, and otherwise by first-class U.S. mail, to those Holders of Claims in the

Voting Classes. Each Solicitation Package will include the following materials:

               a.      the Order (without exhibits, except the Solicitation and Voting Procedures);

               b.      a Ballot, together with detailed voting instructions and, for those Ballots
                       distributed by first-class mail, a pre-addressed, postage prepaid return
                       envelope;

               c.      the Cover Letter, including instructions to obtain access, free of charge, to
                       the        Plan         and         Disclosure         Statement         via
                       https://omniagentsolutions.com/Vyaire;

               d.      the Combined Hearing Notice; and

               e.      any other materials as the Court may direct.

       52.     Distributing Solicitation Packages by email where available is the most expeditious

and cost-effective method of service here. The Debtors have reliable and active email addresses

for these parties and ordinarily correspond with them through email in the ordinary course. Email

service is not only the most efficient and cost-effective manner by which to service such Holders

of Claims, but is also consistent with how the Debtors’ have sought to serve their creditors in these




                                                 27
             Case 24-11217-BLS            Doc 520       Filed 09/11/24   Page 28 of 38




Chapter 11 Cases. Accordingly, the Debtors submit that service via email, where possible, is

justified under the circumstances of these Chapter 11 Cases.

       53.     Due to the voluminous nature of certain documents, the Debtors request

authorization to distribute the Plan and Disclosure Statement to Holders of Claims entitled to vote

on the Plan by providing instructions as part of the Solicitation Package for accessing these

documents through the Debtors’ restructuring website (https://omniagentsolutions.com/Vyaire),

and, if a Holder requests a hard copy or flash drive from the Notice and Claims Agent, a hard copy

or flash drive within three business days of receipt of such request. Given the length of the Plan

and the Disclosure Statement, distribution in this manner will allow the Solicitation Packages to

be sent on the earliest possible date.

       54.     Additionally, the Debtors will provide (a) complete Solicitation Packages

(excluding the Ballots) to the U.S. Trustee, and (b) the Order (in electronic format) and

the Combined Hearing Notice to all parties required to be notified under Bankruptcy Rule 2002

and Local Rule 2002-1 (the “2002 List”) as of the Voting Record Date.

       55.     Any party that would prefer to receive materials in paper format may contact the

Notice and Claims Agent and request paper copies of the materials (to be provided at the Debtors’

expense)      by       (a)     visiting      the        Debtors’    restructuring   website      at

https://omniagentsolutions.com/Vyaire, (b) writing to: Vyaire Medical, Inc. et al., c/o Omni Agent

Solutions, Inc., 5955 De Soto Avenue, Suite 100, Woodland Hills, CA 91367, (c) emailing

Vyaireinquiries@omniagnt.com, or (d) calling the Debtors’ Notice and Claims Agent at

(866) 956-2140 (U.S. toll-free) or +1 (818) 666-3635 (International). Parties in interest can also

obtain these documents and any other pleadings filed in these Chapter 11 Cases (for a fee) via

PACER at https://ecf.deb.uscourts.gov. The Debtors will not distribute Solicitation Packages or




                                                   28
             Case 24-11217-BLS          Doc 520        Filed 09/11/24   Page 29 of 38




other solicitation materials to Holders of Claims and Interests that have already been paid in full

during these Chapter 11 Cases or that are expected to be paid in full in the ordinary course of

business pursuant to an order previously entered by the Court in these Chapter 11 Cases.

       56.     The Debtors respectfully request that the Notice and Claims Agent be authorized

(to the extent not authorized by another order of the Court) to assist the Debtors in (a) distributing

the Solicitation Packages, (b) receiving, tabulating, and reporting on Ballots cast to accept or reject

the Plan by Holders of Claims against the Debtors, (c) responding to inquiries from Holders of

Claims and other parties in interest relating to the Disclosure Statement, the Plan, the Ballots, the

Solicitation Packages, and all other related documents and matters related thereto, including the

procedures and requirements for voting to accept or reject the Plan and for objecting to the Plan,

(d) soliciting votes on the Plan, and (e) if necessary, contacting creditors regarding the Plan.

       57.     In addition to accepting hard copy Ballots via first class mail, overnight courier,

and hand delivery, the Debtors request authorization to accept Ballots via electronic, online

transmissions, solely through upload to the online balloting portal maintained by the Notice and

Claims Agent on the Debtors’ case website. Instructions for electronic, online transmission of

Ballots are set forth on the forms of Ballots. The encrypted ballot data and audit trail created by

such electronic submission shall become part of the record of any Ballot submitted in this manner

and the creditor’s electronic signature will be deemed to be immediately legally valid and effective.

For the avoidance of doubt, Ballots submitted by utilizing the online balloting portal will be

deemed to include an original electronic signature. Ballots submitted by email, facsimile, or other

electronic means shall be deemed invalid.

       58.     All votes to accept or reject the Plan must be cast by using the appropriate Ballot.

All Ballots must be properly executed, completed, and delivered according to their applicable




                                                  29
             Case 24-11217-BLS          Doc 520       Filed 09/11/24      Page 30 of 38




voting instructions by: (a) first class mail; (b) overnight courier; (c) personal delivery; or (d) via

the Notice and Claim Agent’s online balloting portal, so that the Ballots are actually received by

the Notice and Claims Agent no later than the Voting Deadline at the return address set forth in

the applicable Ballot.

       F.      The Court Should Approve the Combined Hearing Notice.

       59.     The Debtors request that the Court approve the Combined Hearing Notice,

substantially in the form attached hereto as Exhibit 8 to the Order. In accordance with Bankruptcy

Rules 2002 and 3017(d), the Combined Hearing Notice provides (a) instructions as to how to view

or obtain copies of the Disclosure Statement (including the Plan and the other exhibits attached

thereto), the Order, and all other materials in the Solicitation Package (excluding Ballots) from the

Notice and Claims Agent or the Court’s website via PACER; (b) notice of the Voting Deadline;

(c) notice of the date by which the Debtors will file the Plan Supplement; (d) notice of the

Confirmation Objection Deadline; and (e) notice of the Combined Hearing and information related

thereto.

       60.     The Combined Hearing Notice will be made available on the Debtors’ chapter 11

website at: https://omniagentsolutions.com/Vyaire. In addition, the Debtors propose to serve the

Combined Hearing Notice, within three business days following entry of the Order, upon

the Debtors’ entire creditor matrix and all interest holders of record.

       61.     Bankruptcy Rule 2002(l) permits the court to “order notice by publication if it finds

that notice by mail is impracticable or that it is desirable to supplement the notice.” Therefore, in

addition to the foregoing distribution of the Combined Hearing Notice, the Debtors will publish

the Combined Hearing Notice in a format modified for publication (the “Publication Notice”), as

soon as reasonably practicable after entry of the Order, on one occasion in a nationally recognized

and circulated news publication. The Debtors believe that the Publication Notice will provide


                                                 30
             Case 24-11217-BLS         Doc 520       Filed 09/11/24   Page 31 of 38




sufficient notice of, among other things, the entry of the Order, the Voting Deadline, the Objection

Deadline, and the Combined Hearing to parties who did not otherwise receive notice thereof.

Accordingly, service and publication of the Combined Hearing Notice comports with the

requirements of Bankruptcy Rule 2002 and should be approved.

       G.      The Court Should Approve the Plan Supplement Notice.

       62.     The Plan defines “Plan Supplement” to mean the compilation of documents and

forms of documents, schedules, and exhibits to the Plan that the Debtors will file at least seven

days prior to the Voting Deadline and post to the Debtors’ restructuring website at:

https://omniagentsolutions.com/Vyaire. See Plan at Article I.A.111. The Plan Supplement will

include, among other materials, the following materials in connection with Confirmation:

(a) Schedule of Assumed Executory Contracts and Unexpired Leases, (b) Schedule of Rejected

Executory Contracts and Unexpired Leases, (c) Schedule of Retained Causes of Action,

(d) the Plan Administrator Agreement, (e) the Wind-Down Budget, and (f) any other necessary

documentation related to the Sale Transactions or Restructuring Transactions in accordance with

the Plan; provided that, through the Effective Date, the Plan Supplement and the exhibits thereto

may be amended or modified in accordance with the Plan.

       63.     To ensure that all Holders of Claims and Interests receive notice of the Debtors’

filing of the Plan Supplement, the Debtors respectfully submit that the Plan Supplement Notice

should be approved.

       H.      The Court Should Approve the Form of Notices to Non-Voting Classes.

       64.     As discussed above, the Non-Voting Classes are not entitled to vote on the Plan.

As a result, they will not receive Solicitation Packages, and instead, the Debtors propose that such

parties receive a Non-Voting Status Notice.       Specifically, in lieu of solicitation materials,




                                                31
               Case 24-11217-BLS             Doc 520       Filed 09/11/24     Page 32 of 38




the Debtors propose to provide the following to Holders of Claims and Interests in Non-Voting

Classes:

           Class                             Status                                 Treatment
                                                                     Will receive a Non-Voting Status Notice,
                           Unimpaired—Conclusively Presumed to       substantially in the form attached to the
 Classes 1, 2, and 3
                           Accept                                    Order as Exhibit 4 in lieu of a Solicitation
                                                                     Package.
                                                                     Will receive a Non-Voting Status Notice,
 Classes 6, 7, 8, 9, and                                             substantially in the forms attached to the
                           Impaired—Deemed to Reject
 10                                                                  Order as Exhibit 5 in lieu of a Solicitation
                                                                     Package.
                                                                     Holders of Claims and Interests that are
                                                                     subject to a pending objection by the
                                                                     Debtors are not entitled to vote the
                                                                     disputed portion of their Claim. As such,
 N/A                       Disputed Claims
                                                                     Holders of such Claims will receive a
                                                                     notice, substantially in the forms attached
                                                                     hereto as Exhibit 6 (which notice shall be
                                                                     served together with such objection).


        65.        Each of the Non-Voting Status Notices will include, among other things:

(a) instructions as to how to view or obtain copies of the Disclosure Statement (including the Plan

and the other exhibits thereto), the Order, and all other materials in the Solicitation Package

(excluding Ballots) from the Notice and Claims Agent free of charge or the Court’s website via

PACER; (b) a disclosure regarding the settlement, release, exculpation, and injunction language

set forth in Article VIII of the Plan; (c) notice of the Objection Deadline; (d) notice of

the Combined Hearing; and (e) information related thereto.

        66.        The Debtors believe that the distribution of Non-Voting Status Notices in lieu of

Solicitation Packages satisfies the requirements of Bankruptcy Rule 3017(d). Accordingly, unless

the Court orders otherwise, the Debtors do not intend to distribute Solicitation Packages to Holders

of Claims in the Non-Voting Classes.

        67.        The Debtors further request that they not be required to distribute Solicitation

Packages or other solicitation materials to the following: (a) Holders of Claims that have already



                                                      32
             Case 24-11217-BLS          Doc 520       Filed 09/11/24   Page 33 of 38




been paid in full during these Chapter 11 Cases or that are authorized to be paid in full in the

ordinary course of business pursuant to an order previously entered by this Court; (b) any party to

whom a notice of the hearing regarding the Court’s approval of the Disclosure Statement was sent,

but was subsequently returned as undeliverable; or (c) Holders of Class 7 Intercompany Claims

and Class 8 Intercompany Interests.

       I.      The Court Should Approve the Notices to Contract and Lease Counterparties.

       68.     Article V.A of the Plan provides that, except as otherwise provided in the Plan or

otherwise agreed to by the Debtors and the counterparty to an Executory Contract or Unexpired

Lease, each of the Debtors’ Executory Contracts and Unexpired Leases will be deemed

automatically rejected pursuant to sections 365 and 1123 of the Bankruptcy Code as of the Plan

Effective Date, unless such Executory Contract or Unexpired Lease: (a) is identified on the

Schedule of Assumed Executory Contracts and Unexpired Leases; (b) was previously assumed or

rejected by a Final Order; (c) is the subject of a motion to assume or reject Executory Contracts or

Unexpired Leases that is pending on the Confirmation Date; or (d) is subject to a motion to assume

or reject an Executory Contract or Unexpired Lease pursuant to which the requested effective date

of such rejection is after the Effective Date.

       69.     To ensure that counterparties to Executory Contracts and Unexpired Leases receive

notice of assumption or rejection of their Executory Contract or Unexpired Lease (and any

corresponding Cure Costs) pursuant to the Plan, the Debtors will distribute by email, where

available, and otherwise by first-class U.S. mail, an Assumption Notice or a Rejection Notice, as

appropriate, within the time periods specified in the Plan. If certain, but not all, of a contract

counterparty’s Executory Contracts and Unexpired Leases are assumed pursuant to the Plan,

the Confirmation Order will be a determination that such counterparty’s Executory Contracts and

Unexpired Leases that are being rejected pursuant to the Plan are severable agreements that are


                                                 33
             Case 24-11217-BLS         Doc 520        Filed 09/11/24   Page 34 of 38




not integrated with those Executory Contracts and Unexpired Leases that are being assumed

pursuant to the Plan. Parties seeking to contest this finding with respect to their Executory

Contracts or Unexpired Leases must file a timely objection by the Confirmation Objection

Deadline on the grounds that their agreements are integrated and not severable.

V.     The Court Should Approve the Voting Record Date, Solicitation Deadline, and Voting
       Deadline.

       70.     Bankruptcy Rule 3017(d) provides that, for the purposes of soliciting votes in

connection with the confirmation of a plan, “creditors and equity security holders shall include

holders of stocks, bonds, debentures, notes, and other securities of record on the date the order

approving the disclosure statement is entered or another date fixed by the court, for cause, after

notice and a hearing.”      Bankruptcy Rule 3018(a) contains a similar provision regarding

determination of the record date for voting purposes.

       71.     The Debtors request that the Court exercise its authority under Bankruptcy

Rules 3017(d) and 3018(a) to establish October 2, 2024, as the Voting Record Date. Moreover,

the Debtors propose that, with respect to any transferred Claim, the transferee shall be entitled to

receive a Solicitation Package and, if the Holder of such Claim is entitled to vote with respect to

the Plan, cast a Ballot on account of such Claim only if: (a) all actions necessary to effectuate the

transfer of the Claim pursuant to Bankruptcy Rule 3001(e) have been completed by the Voting

Record Date, or (b) the transferee files by the Voting Record Date (i) the documentation required

by Bankruptcy Rule 3001(e) to evidence the transfer and (ii) a sworn statement of the transferor

supporting the validity of the transfer. In the event a Claim is transferred after the Voting Record

Date, the transferee of such Claim shall be bound by any vote on the Plan made by the Holder of

such Claim as of the Voting Record Date.




                                                 34
             Case 24-11217-BLS          Doc 520       Filed 09/11/24    Page 35 of 38




       72.     With respect to parties seeking to file a motion under Bankruptcy Rule 3018(a) to

temporarily allow a Claim or Interest solely for purposes of voting to accept or reject the Plan, the

Debtors request that the Court establish as the deadline by which a party must file such a motion

the date that is 10 days from the later of (a) the distribution of the Combined Hearing Notice and

(b) the filing of an objection to such Claim or Interest. The Debtors further request that the Debtors

and other parties in interest shall have until November 4, 2024, to file objections to any motions

filed under Bankruptcy Rule 3018(a).

       73.     The Debtors request that, after the Debtors distribute Solicitation Packages to

Holders of Claims and Interests entitled to vote on the Plan by the Solicitation Deadline, the Court

require that all Holders of Claims and Interests entitled to vote on the Plan complete, execute, and

return their customized Ballots (in accordance with the instructions on the Ballots) so that they are

actually received by the Notice and Claims Agent on or before the Voting Deadline.

       74.     The foregoing timing and materials will afford Holders of Claims and Interests

entitled to vote on the Plan 28 days within which to review and analyze such materials and

subsequently make an informed decision as to whether to vote to accept or reject the Plan before

the Voting Deadline consistent with the requirements of the applicable Bankruptcy Rules and

Local Rules. See Fed. R. Bankr. P. 3017(d) (after approval of a disclosure statement, the debtor

must transmit the plan, the approved disclosure statement, a notice of the time within which

acceptances and rejections of such plan may be filed, and any other information that the court may

direct to certain holders of claims); see also Del. Bankr. L.R. 3017-1(a) (following the filing of a

disclosure statement, the plan proponent must provide notice of hearing and objection dates in

accordance with Bankruptcy Rule 3017). Accordingly, the Debtors request that the Court approve




                                                 35
             Case 24-11217-BLS          Doc 520       Filed 09/11/24    Page 36 of 38




the form of and the Debtors’ proposed procedures for distributing the Solicitation Packages to the

Holders of Claims in the Voting Classes.

                                 Non-Substantive Modifications

       75.     The Debtors request authorization to make non-substantive changes to the

Disclosure Statement, Disclosure Statement Hearing Notice, Plan, Combined Hearing Notice,

Solicitation Packages, Non-Voting Status Notices, Ballots, Publication Notice, Cover Letter,

Solicitation and Voting Procedures, Plan Supplement Notice, Assumption Notice, Rejection

Notice, Voting and Tabulation Procedures, and related documents after the Order is entered

without further order of the Court, including changes to correct typographical and grammatical

errors, if any, and to make conforming changes to the Disclosure Statement, the Plan, and any

other materials in the Solicitation Packages before distribution.

                                      Reservation of Rights

       76.     Nothing contained in this motion or any order granting the relief requested in this

motion, and no action taken by the Debtors pursuant to the relief requested or granted (including

any payment made in accordance with any such order), is intended as or shall be construed or

deemed to be: (a) an admission as to the amount of, basis for, priority or validity of any claim

against the Debtors under the Bankruptcy Code or other applicable nonbankruptcy law;

(b) a waiver of the Debtors’ or any other party in interest’s rights to dispute any claim on any

grounds; (c) a promise or requirement to pay any particular claim; (d) an implication, admission

or finding that any particular claim is an administrative expense claim, other priority claim or

otherwise of a type specified or defined in this motion or any order granting the relief requested

by this motion; (e) a request or authorization to assume, adopt or reject any agreement, contract,

or lease pursuant to section 365 of the Bankruptcy Code; (f) an admission as to the validity, priority

enforceability or perfection of any lien on, security interest in or other encumbrance on property


                                                 36
               Case 24-11217-BLS        Doc 520        Filed 09/11/24   Page 37 of 38




of the Debtors’ estates; or (g) a waiver or limitation of any claims, causes of action or other rights

of the Debtors or any other party in interest against any person or entity under the Bankruptcy

Code or any other applicable law.

                                               Notice

       77.      The Debtors will provide notice of this motion to: (a) the United States Trustee for

the District of Delaware; (b) Counsel to the Committee; (c) the office of the attorney general for

each of the states in which the Debtors operate; (d) the United States Attorney’s Office for the

District of Delaware; (e) the Internal Revenue Service; (f) the United States Securities and

Exchange Commission; (g) counsel to the 1L Ad Hoc Group; (h) the agent of the DIP Facility and

counsel thereto; (i) the agent of the First Lien Credit Agreement and counsel thereto; (j) the Second

Lien Credit Agreement Agent and counsel thereto; (k) the agent of the First Lien Notes and counsel

thereto; (l) any party that has requested notice pursuant to Bankruptcy Rule 2002. The Debtors

submit that, in light of the nature of the relief requested, no other or further notice need be given.

                                         No Prior Request

       78.      No prior request for the relief sought in this motion has been made to this or any

other court.

                           [Remainder of Page Intentionally Left Blank]




                                                  37
                   Case 24-11217-BLS           Doc 520   Filed 09/11/24     Page 38 of 38




             WHEREFORE, the Debtors request entry of the Order, substantially in the form attached

      hereto as Exhibit A, (a) granting the relief requested herein and (b) granting such other relief as

      the Court deems appropriate under the circumstances.

Dated: September 11, 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)         Spencer A. Winters, P.C. (admitted pro hac vice)
 Warren A. Usatine, Esq (admitted pro hac vice)          Yusuf U. Salloum (admitted pro hac vice)
 Court Plaza North, 25 Main Street                       333 West Wolf Point Plaza
 Hackensack, New Jersey 07601                            Chicago, Illinois 60654
 Telephone:     (201) 489-3000                           Telephone:      (312) 862-2000
 Facsimile:     (201) 489-1536                           Facsimile:      (312) 862-2200
 Email:         msirota@coleschotz.com                   Email:          spencer.winters@kirkland.com
                wusatine@coleschotz.com                                  yusuf.salloum@kirkland.com


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

File and source

File
gov.uscourts.deb.193283.520.0.pdf
Size
664,466 bytes
SHA-256
054efd26a64f196f5d8c246e9cafa29745cb3aa8e518deaba9093c5f0f457fae
Our copy
gov.uscourts.deb.193283.520.0.pdf
Original
PACER (login required)
Back to top