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Vyaire - First Substantive Omnibus Claims Objection to 503b9 Claims

Date
2025-01-27

Summary

Exhibit A, a proposed order, filed January 27, 2025 as Doc 976-2 in In re Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), the Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. The proposed order would grant the plan administrator's first omnibus objection (substantive) to certain section 503(b)(9) claims. It disallows and expunges or reduces the assumed claims on Schedule 1 and reclassifies the claims on Schedule 2 as non-statutory period claims, Schedule 3 as non-goods claims and Schedule 4 as books and records claims. Each schedule lists the claimant, the debtor, the claim number and the amounts by classification before and after modification, with reasons such as goods not received within 20 days of the bankruptcy filing. It also states that each objection is a separate contested matter under Bankruptcy Rule 9014.

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 976-2   Filed 01/27/25   Page 1 of 10




                       EXHIBIT A

                      Proposed Order
                Case 24-11217-BLS              Doc 976-2          Filed 01/27/25       Page 2 of 10




                          IN THE UNITED STATES BANKRUPTCY COURT
                               FOR THE DISTRICT OF DELAWARE

                                                              )
In re:                                                        )        Chapter 11
                                                              )
VYAIRE MEDICAL, INC., et al.,                                 )        Case No. 24-11217 (BLS)
                                                              )
                            Debtors.                          )        (Jointly Administered)
                                                              )
                                                              )        Re: Docket No. __

   ORDER GRANTING AND SUSTAINING PLAN ADMINISTRATOR’S FIRST
OMNIBUS OBJECTION (SUBSTANTIVE) TO CERTAIN SECTION 503(B)(9) CLAIMS

          Upon consideration of the Plan Administrator’s First Omnibus Objection (Substantive) to

Certain Claims (the “Objection”);1 and the Court having jurisdiction over this core proceeding

under 28 U.S.C. §§ 157 and 1334; and venue of this matter in the District of Delaware being

proper under 28 U.S.C. §§ 1408 and 1409; and the Court having reviewed the Objection, the

Disputed Claims listed on Schedule 1, Schedule 2, Schedule 3, and Schedule 4 hereto, the

Declaration of Joel Amico of AP Services, LLC in support of the Objection, any responses to

the Objection, and any replies to those responses; and due notice of the Objection having been

provided; and the relief sought by the Objection being in the best interests of the Debtors, the

Debtors’ creditors and all other parties in interest; and after due deliberation thereon and good

and sufficient cause appearing therefor, it is hereby

ORDERED, ADJUDGED AND DECREED THAT:

          1.       The Objection is GRANTED to the extent set forth herein.

          2.       Each Assumed Claim listed on Schedule 1 hereto is hereby disallowed and

expunged in its entirety or modified and reduced as set forth in the “Modified Status & Amount”

column therein.


1
    Capitalized terms not defined herein shall have the meanings ascribed to the terms in the Objection.
             Case 24-11217-BLS          Doc 976-2      Filed 01/27/25    Page 3 of 10




        3.      Each Non-Statutory Period Claim listed on Schedule 2 hereto is hereby modified

and reclassified as set forth in the “Modified Classification Status & Amount” column therein.

        4.      Each Non-Goods Claim listed on Schedule 3 hereto is hereby modified and

reclassified as set forth in the “Modified Classification Status & Amount” column therein.

        5.      Each Books and Records Claim listed on Schedule 4 hereto is hereby modified

and reclassified as set forth in the “Modified Classification Status & Amount” column therein.

        6.      The Disputed Claims listed on Schedules 1-4 are not Allowed, and the Plan

Administrator, the Debtors and their estates, any successors thereto and any other party in

interest shall retain and shall have the right to object in the future to any of the claims listed on

Schedules 1-4 on any additional grounds, and the Plan Administrator shall retain and shall have

the right to amend, modify and/or supplement the Objection as may be necessary.

        7.      The Plan Administrator is authorized to take any action necessary or appropriate

to give effect to this Order and the relief granted therein.

        8.      Omni Agent Solutions, Inc., the Court-appointed claims and noticing agent in the

chapter 11 cases, is hereby authorized and directed to make such revisions to the official claims

register as are necessary to reflect the relief granted in this Order.

        9.      The Plan Administrator’s objection to each Disputed Claim addressed in the

Objection constitutes a separate contested matter as contemplated by Bankruptcy Rule 9014.

This Order shall be deemed a separate order with respect to each Disputed Claim. Any stay of

this Order pending appeal by any of the claimants subject to this Order shall only apply to the

contested matter which involves such claimant and shall not act to stay the applicability and/or

finality of this Order with respect to the other contested matters covered hereby.




                                                   2
             Case 24-11217-BLS         Doc 976-2    Filed 01/27/25    Page 4 of 10




       10.     This Order is without prejudice rights of the Plan Administrator, the Debtors’

estates, any successors thereto and any other party in interest to object to any other proof of

claim filed in the chapter 11 cases.

       11.     The Court shall retain jurisdiction over the claimants whose claims are subject to

the Objection with respect to any matter arising from or related to the Objection or this Order,

including the interpretation, enforcement and implementation of this Order.




                                               3
                                                             Case 24-11217-BLS                      Doc 976-2               Filed 01/27/25                    Page 5 of 10
                                                                                                          SCHEDULE 1
                                                                                                        ASSUMED CLAIMS
                                                  Objection Key
          (Sec)- Secured
          (Adm)- Administrative
          (503)- 503(b)(9)
          (Pri)- Priority
          (GUC)- Non-Priority General Unsecured
          (Tot)- Total Claim



  Item                                                               Debtor Against Whom Claim            Claim Amount & Classification      Modified Classification
                              Claimant Name            Case Number                                Claim                                                                                      Reason for Modification
   No.                                                                         is Filed                             Status                     Status & Amount
                                                                                                   No.
    1     Dell Marketing LP                          24-12239            Vyaire Medical LLC         2     (Sec)-     $             -      (Sec)-    $             -
                                                                                                          (Adm)-     $             -      (Adm)-    $             -
                                                                                                          (503)-     $     493,101.16 (503)-        $             -
                                                                                                                                                                       503(b)(9) portion of the claim was assumed by Trudell and therefore
                                                                                                          (Pri)-     $            -   (Pri)-        $             -
                                                                                                                                                                       the Debtors are not liable on such claim.
                                                                                                          (GUC)-     $     221,809.37 (GUC)-        $     221,809.37
                                                                                                          (Tot)-     $     714,910.53 (Tot)-        $     221,809.37


    2     Perma Pure                                 24-11234          Vyaire Medical 211, Inc.    10     (Sec)-     $             -      (Sec)-    $             -
                                                                                                          (Adm)-     $             -      (Adm)-    $             -    The Debtors' books and records indicate that $157,242.75 of the
                                                                                                          (503)-     $     189,071.75 (503)-        $             -    section 503(b)(9) claim was satisfied on or about July 23, 2024 by
                                                                                                          (Pri)-     $            -   (Pri)-        $             -    Check #302314 as is or will be set forth in the The Plan
                                                                                                          (GUC)-                          (GUC)-                       Administrator's First Notice of Satisfaction of Claims. The balance of
                                                                                                                     $             -                $             -
                                                                                                                                                                       the 503(b)(9) claim totaling $31,828.75, to the extent valid, was
                                                                                                          (Tot)-     $     189,071.75 (Tot)-        $             -
                                                                                                                                                                       assumed by Trudell and therefore the Debtors are not liable for such
                                                                                                                                                                       claim.

    3     Vacumetrics, Inc.                          24-11217            Vyaire Medical Inc.       50     (Sec)-     $             -      (Sec)-    $             -
                                                                                                          (Adm)-     $             -      (Adm)-    $             -
                                                                                                          (503)-     $        7,590.00 (503)-       $             -
                                                                                                                                                                     503(b)(9) portion of the claim was assumed by Trudell and therefore
                                                                                                          (Pri)-     $             -   (Pri)-       $            -
                                                                                                                                                                     the Debtors are not liable for such claim.
                                                                                                          (GUC)-     $       20,266.00 (GUC)-       $      20,266.00
                                                                                                          (Tot)-     $       27,856.00 (Tot)-       $      20,266.00




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                                                             Case 24-11217-BLS                         Doc 976-2                Filed 01/27/25                Page 6 of 10
                                                                                                                 SCHEDULE 2
                                                                                                    NON-STATUTORY PERIOD CLAIMS
                                                       Objection Key
               (Sec)- Secured
               (Adm)- Administrative
               (503)- 503(b)(9)
               (Pri)- Priority
               (GUC)- Non-Priority General Unsecured
               (Tot)- Total Claim

                                                                         Debtor Against Whom Claim is    Claim           Claim Amount &            Modified Classification
  Item No.                       Claimant Name             Case Number                                                                                                                           Reason for Reclassification
                                                                                     Filed                No.         Classification Status           Status & Amount
      1        Greatbatch Medical                        24-11217             Vyaire Medical Inc.         119     (Sec)-    $               -   (Sec)- $                 -
                                                                                                                  (Adm)-    $               -   (Adm)-   $              -  The proof of claim (including any support) indicates that goods were
                                                                                                                  (503)-    $     2,562,288.00 (503)-    $              -  "ordered and in process of manufacture" and does not reflect any
                                                                                                                  (Pri)-    $              -   (Pri)-    $             -   goods were actually received by the Debtors within 20 days of the
                                                                                                                  (GUC)-    $        17,200.00 (GUC)-    $    2,579,488.00 bankruptcy filing. The Debtors' books and records do not reflect that
                                                                                                                  (Tot)-    $     2,579,488.00 (Tot)-    $    2,579,488.00 any goods set forth in the claim were ever received. Claim
                                                                                                                                                                           reclassified in entirety to non-priority general unsecured claim.


      2        Enhanced Filter Co.                       24-11234           Vyaire Medical 211, Inc.      11      (Sec)-    $               -   (Sec)-   $              -
                                                                                                                  (Adm)-    $               -   (Adm)-   $              -
                                                                                                                                                                           The Debtors' books and records reflect that only $1,502.40 is a valid
                                                                                                                  (503)-    $        26,676.70 (503)-    $              -  section 503(b)(9) claim and such amount has already been satisfied
                                                                                                                  (Pri)-    $              -   (Pri)-    $             -   by the Debtors. The balance of $25,174.30 were for good received by
                                                                                                                  (GUC)-    $               -   (GUC)-   $       25,174.30 the Debtors on April 20, 2024 and outside the 20 days prior to the
                                                                                                                  (Tot)-    $        26,676.70 (Tot)-    $       25,174.30 filing of the bankruptcy cases. The balance of $25,174.30 reclassified
                                                                                                                                                                           to a non-priority general unsecured claim.




      3        Pavese AG Prazisionsmechanik              24-11217             Vyaire Medical Inc.         128     (Sec)-    $               -   (Sec)-   $              -
                                                                                                                  (Adm)-    $               -   (Adm)-   $              -
                                                                                                                                                                           The proof of claim, including any support attached to the proof of
                                                                                                                  (503)-    $        33,177.96 (503)-    $              -
                                                                                                                                                                           claim did not provide sufficient detail establishing that any goods
                                                                                                                  (Pri)-    $              -   (Pri)-    $             -   were received by the Debtors within 20 days of the bankruptcy filing.
                                                                                                                  (GUC)-    $               -   (GUC)-   $       33,177.96 A review of the Debtors' books and records reflects that the goods
                                                                                                                  (Tot)-    $        33,177.96 (Tot)-    $       33,177.96 referenced were received on or about February 29, 2024 and not
                                                                                                                                                                           within 20 days of the bankruptcy filing. Claim reclassified in entirety
                                                                                                                                                                           to non-priority general unsecured claim.




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                                                     Case 24-11217-BLS                      Doc 976-2             Filed 01/27/25                Page 7 of 10


                                                                                                       SCHEDULE 3
                                                                                                   NON-GOODS CLAIMS
                                               Objection Key
          (Sec)- Secured
          (Adm)- Administrative
          (503)- 503(b)(9)
          (Pri)- Priority
          (GUC)- Non-Priority General Unsecured
          (Tot)- Total Claim


                                                                       Debtor Against
 Item                                                                                                    Claim Amount &          Modified Classification
                            Claimant Name               Case Number    Whom Claim is        Claim                                                                             Reason for Reclassification
  No.                                                                                                  Classification Status       Status & Amount
                                                                           Filed             No.
                                                                                                    (Sec)-                     (Sec)-
   1      3MD Relocation Services, LLC                 24-11217       Vyaire Medical Inc.    170             $            -             $            -

                                                                                                    (Adm)- $              -    (Adm)-   $            -   The proof of claim (including any support) and/or the Debtors'
                                                                                                    (503)- $         2,004.50 (503)-    $            -   books and records reflect that claim is not based on the Debtors'
                                                                                                    (Pri)- $              -   (Pri)- $               -   receipt of any goods. Claim reclassified in entirety to non-priority
                                                                                                    (GUC)- $              -   (GUC)- $          2,004.50 general unsecured claim.
                                                                                                    (Tot)- $         2,004.50 (Tot)- $          2,004.50

                                                                        Vyaire Medical              (Sec)-                     (Sec)-
   2      Georgia Dept. of Revenue                     24-11230                                              $            -             $            -
                                                                          202, Inc.           2
                                                                                                    (Adm)- $                   (Adm)-                    Claimant checked 503(b)(9) box but did not inlcude an amount. The
                                                                                                                          -             $            -
                                                                                                                                                         proof of claim (including any support) and/or the Debtors' books
                                                                                                    (503)-          Unknown (503)-      $            -
                                                                                                                                                         and records reflect that claim is not based on the Debtors' receipt
                                                                                                    (Pri)-   $      77,429.40 (Pri)- $         77,429.40
                                                                                                                                                         of any goods. Section 503(b)(9) portion of claim reclassified in
                                                                                                    (GUC)- $         5,541.25 (GUC)- $          5,541.25 entirety to non-priority general unsecured claim.
                                                                                                    (Tot)- $        82,970.65 (Tot)- $         82,970.65

                                                                                                    (Sec)-                     (Sec)-
   3      John L. O'Donoghue, VMD, PhD, DABT           24-11217       Vyaire Medical Inc.                    $            -             $            -
                                                                                             215
                                                                                                    (Adm)- $              -    (Adm)-   $            -   The proof of claim (including any support) and/or the Debtors'
                                                                                                    (503)- $                                             books and records reflect that claim is not based on the Debtors'
                                                                                                                     7,260.00 (503)-    $            -
                                                                                                                                                         receipt of any goods. Proof of claim provides it is for "Professional
                                                                                                    (Pri)-   $            -   (Pri)- $               -
                                                                                                                                                         services performed." Claim reclassified in entirety to non-priority
                                                                                                    (GUC)-                    (GUC)- $          7,260.00 general unsecured claim.
                                                                                                    (Tot)-   $       7,260.00 (Tot)- $          7,260.00

                                                                                                    (Sec)-                     (Sec)-
   4      McKinley Equipment Corporation               24-11217       Vyaire Medical Inc.    171             $            -             $            -

                                                                                                    (Adm)- $              -    (Adm)-   $            -   The proof of claim (including any support) and/or the Debtors'
                                                                                                                                                         books and records reflect that claim is not based on the Debtors'
                                                                                                    (503)- $         1,191.63 (503)-    $            -
                                                                                                                                                         receipt of any goods. Proof of claim provides it is for "services
                                                                                                    (Pri)- $              -   (Pri)-    $            -
                                                                                                                                                         performed." Section 503(b)(9) portion of claim reclassified in
                                                                                                    (GUC)- $         4,381.43 (GUC)- $          5,573.06 entirety to non-priority general unsecured claim.
                                                                                                    (Tot)- $         5,573.06 (Tot)- $          5,573.06




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                          Case 24-11217-BLS               Doc 976-2          Filed 01/27/25        Page 8 of 10


                                                                (Sec)-                (Sec)-
   5      Qmedic W.L.L.   24-1117   Vyaire Medical Inc.                  $        -            $        -
                                                          174
                                                                (Adm)- $          -   (Adm)-   $        -   The proof of claim (including any support) and/or the Debtors'
                                                                (503)- $          -   (503)-   $        -   books and records reflect that claim is not based on the Debtors'
                                                                                                            receipt of any goods. Proof of claim provides it is for "Balance of
                                                                (Pri)- $      4,989.96 (Pri)- $         -
                                                                                                            Credit Note in our Favour." Claim reclassified in entirety to non-
                                                                (GUC)- $           -   (GUC)- $    4,989.96
                                                                                                            priority general unsecured claim.
                                                                (Tot)- $      4,989.96 (Tot)- $    4,989.96




68877/0001-49192355v2
                                                    Case 24-11217-BLS                        Doc 976-2            Filed 01/27/25               Page 9 of 10


                                                                                                         SCHEDULE 4
                                                                                              BOOKS AND RECORDS CLAIMS
                                               Objection Key
           (Sec)- Secured
           (Adm)- Administrative
           (503)- 503(b)(9)
           (Pri)- Priority
           (GUC)- Non-Priority General Unsecured
           (Tot)- Total Claim


                                                                       Debtor Against
                                                                                                           Claim Amount &           Modified Classification
Item No.                      Claimant Name             Case Number    Whom Claim is         Claim                                                                                 Reason for Reclassification
                                                                                                         Classification Status        Status & Amount
                                                                           Filed              No.
                                                                                                     (Sec)-                      (Sec)-
    1      Ambrit Engineering                         24-11217        Vyaire Medical, Inc.                    $              -            $              -
                                                                                              109
                                                                                                     (Adm)- $                -   (Adm)-   $              -  Claimant checked 503(b)(9) box but did not inlcude an amount. The
                                                                                                     (503)-            Unknown (503)-     $              -  proof of claim, including any support attached to the proof of claim
                                                                                                     (Pri)- $               -  (Pri)-     $             -   did not provide sufficient detail establishing that any goods were
                                                                                                     (GUC)- $                                               received by the Debtors within 20 days of the bankruptcy filing. A
                                                                                                                     127,811.50 (GUC)-    $      127,811.50
                                                                                                                                                            review of the Debtors' books and records also do not reflect sufficient
                                                                                                     (Tot)- $        127,811.50 (Tot)-    $      127,811.50
                                                                                                                                                            information establishing that any goods were received by the Debtors
                                                                                                                                                            within 20 days of the bankruptcy filing. Claim reclassified in entirety
                                                                                                                                                            to non-priority general unsecured claim.



                                                                      Vyaire Medical 211,            (Sec)-                      (Sec)-
    2      Central-Medori (Int'l) Pte Ltd             24-11234                                                $              -            $              -
                                                                              Inc.            12                                                            The proof of claim, including any support attached to the proof of
                                                                                                     (Adm)-   $             -   (Adm)-    $             -   claim did not provide sufficient detail establishing that any goods
                                                                                                     (503)-   $       19,685.94 (503)-    $             -   were received by the Debtors within 20 days of the bankruptcy filing.
                                                                                                     (Pri)-   $             -   (Pri)-    $             -   A review of the Debtors' books and records also do not reflect
                                                                                                     (GUC)-   $             -   (GUC)-    $       19,685.94 sufficient information establishing that any goods were received by
                                                                                                     (Tot)-   $       19,685.94 (Tot)-    $       19,685.94 the Debtors within 20 days of the bankruptcy filing. Claim
                                                                                                                                                              reclassified in entirety to non-priority general unsecured claim.


                                                                                                     (Sec)-                      (Sec)-
    3      Greatbatch Medical                         24-11217        Vyaire Medical Inc.     119             $              -            $              -
                                                                                                                                                            The proof of claim, including any support attached to the proof of
                                                                                                     (Adm)- $                -   (Adm)-   $              -  claim did not provide sufficient detail establishing that any goods
                                                                                                     (503)- $      2,562,288.00 (503)-    $             -   were received by the Debtors within 20 days of the bankruptcy filing.
                                                                                                     (Pri)-   $             -   (Pri)-    $             -   A review of the Debtors' books and records also do not reflect
                                                                                                     (GUC)- $         17,200.00 (GUC)-    $    2,579,488.00 information establishing that any goods were received by the Debtors
                                                                                                     (Tot)- $      2,579,488.00 (Tot)-    $    2,579,488.00 within 20 days of the bankruptcy filing. Section 503(b)(9) portion of
                                                                                                                                                            claim reclassified to non-priority general unsecured claim.




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                                         Case 24-11217-BLS             Doc 976-2              Filed 01/27/25           Page 10 of 10


                                                                                 (Sec)-                   (Sec)-
    4      Trademark Plastics, Inc.       24-11217   Vyaire Medical Inc.   206            $          -             $           -
                                                                                                                                   Claimant checked 503(b)(9) box but did not inlcude an amount. The
                                                                                 (Adm)-   $           -   (Adm)-   $           -   proof of claim, including any support attached to the proof of claim
                                                                                 (503)-          Unknown (503)-    $           -   did not provide sufficient detail establishing that any goods were
                                                                                 (Pri)-   $           -   (Pri)-   $           -   received by the Debtors within 20 days of the bankruptcy filing. A
                                                                                 (GUC)-   $     19,204.32 (GUC)-   $     19,204.32 review of the Debtors' books and records also do not reflect
                                                                                 (Tot)-   $     19,204.32 (Tot)-   $     19,204.32 information establishing that any goods were received by the Debtors
                                                                                                                                    within 20 days of the bankruptcy filing. Claim reclassified in entirety
                                                                                                                                    to non-priority general unsecured claim.


                                                     Vyaire Medical 203,         (Sec)-                   (Sec)-
    5      United States Plastic Corp.    24-11231                         5              $          -             $           -
                                                             Inc.                                                                  The proof of claim, including any support attached to the proof of
                                                                                 (Adm)-   $           -   (Adm)-   $           -   claim did not provide sufficient detail establishing that any goods
                                                                                 (503)-   $      1,751.01 (503)-   $           -   were received by the Debtors within 20 days of the bankruptcy filing.
                                                                                 (Pri)-   $           -   (Pri)-   $           -   A review of the Debtors' books and records also do not reflect
                                                                                 (GUC)-   $           -   (GUC)-   $      1,751.01 information establishing that any goods were received by the Debtors
                                                                                 (Tot)-   $      1,751.01 (Tot)-   $      1,751.01 within 20 days of the bankruptcy filing. Section 503(b)(9) portion of
                                                                                                                                    claim reclassified to non-priority general unsecured claim.


                                                                                 (Sec)-                   (Sec)-
    6      Vacumetrics, Inc.              24-11217   Vyaire Medical Inc.   50             $          -             $           -

                                                                                 (Adm)-   $           -   (Adm)-   $           -   The proof of claim, including any support attached to the proof of
                                                                                 (503)-   $      7,590.00 (503)-   $           -   claim did not provide sufficient detail establishing that any goods
                                                                                 (Pri)-   $           -   (Pri)-   $           -   were received by the Debtors within 20 days of the bankruptcy filing.
                                                                                 (GUC)-   $     20,266.00 (GUC)-   $     27,856.00 A review of the Debtors' books and records also do not reflect
                                                                                 (Tot)-   $     27,856.00 (Tot)-   $     27,856.00 information establishing that any goods were received by the Debtors
                                                                                                                                   within 20 days of the bankruptcy filing. Section 503(b)(9) portion of
                                                                                                                                   claim reclassified to non-priority general unsecured claim.




68877/0001-49192355v2


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