Vyaire - Motion to Extend Administrative Claim Objection Deadline
- Date
- 2025-03-05
Summary
The Plan Administrator's First Motion to Extend the Administrative Claims Objection Deadline, filed January 24, 2025 as Doc 971 in In re: Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), in the U.S. Bankruptcy Court for the District of Delaware, with a hearing date of March 5, 2025. David M. Barse, as Plan Administrator, asks the court to extend the deadline to object to Administrative Claims to May 27, 2025, the same date as the Claims Objection Deadline for other claims. The motion states that approximately fifty Administrative Claims have been filed, that the original deadline was January 27, 2025, and that claims reconciliation is ongoing. It relies on sections 105 and 502 of the Bankruptcy Code and Bankruptcy Rules 3007 and 9006, and is signed by Cole Schotz P.C. as counsel.
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Case 24-11217-BLS Doc 971 Filed 01/24/25 Page 1 of 7
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: March 5, 2025 at 10:30 a.m. (ET)
) Obj. Deadline: February 7, 2025 at 4:00 p.m. (ET)
PLAN ADMINISTRATOR’S FIRST MOTION
TO EXTEND THE ADMINISTRATIVE CLAIMS OBJECTION DEADLINE
David M. Barse, solely in his capacity as the Plan Administrator of Vyaire Medical, Inc.,
et al. (the “Plan Administrator”), appointed pursuant to the Second Amended Joint Chapter 11
Plan of Vyaire Medical, Inc. and Its Debtor Affiliates [Docket No. 719] (the “Plan”), which was
confirmed by the Order of the United States Bankruptcy Court for the District of Delaware (the
“Court”) on November 14, 2024 [Docket No. 745] (the “Confirmation Order”),2 hereby moves
(the “Motion”) pursuant to sections 105 and 502 of title 11 of the United States Code, 11 U.S.C.
§§ 101-1532 (the “Bankruptcy Code”), and Rules 3007 and 9006 of the Federal Rules of
Bankruptcy Procedure (the “Bankruptcy Rules”) for entry of an order, substantially in the form
attached hereto as Exhibit A (the “Proposed Order”), extending the deadline to file objections to
the allowance of Administrative Claims filed against the estates of the above-captioned debtors
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 shall have the meanings ascribed to such terms in the
Confirmation Order or Plan, as applicable.
Case 24-11217-BLS Doc 971 Filed 01/24/25 Page 2 of 7
(collectively, the “Debtors”) through and including May 27, 2025.3 In support of the Motion, the
Plan Administrator respectfully represents as follows:
JURISDICTION AND VENUE
1. This Court has jurisdiction to consider the Motion under 28 U.S.C. §§ 157 and
1334, and the Amended Standing Order of Reference from the United States District Court for the
District of Delaware dated February 29, 2012. This is a core proceeding under 28 U.S.C. § 157(b).
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 (“Local Rules”), the Plan Administrator
consents to the entry of a final order by the Court in connection with the Motion to the extent that
it is later determined that the Court, absent consent of the parties, cannot enter final orders or
judgments consistent with Article III of the United States Constitution.
2. Venue is proper in this District under 28 U.S.C. §§ 1408 and 1409.
3. The statutory basis for the relief requested herein are sections 105 and 502 of the
Bankruptcy Code. Such relief also is warranted under Bankruptcy Rule 3007 and 9006, and Rule
3007-1 of the Local Rules.
BACKGROUND
4. On June 9, 2024, each of the Debtors commenced a voluntary case under the
Bankruptcy Code with the Court.
5. The Debtors’ chapter 11 cases are being jointly administered under the case styled In
re: Vyaire Medical, Inc., et al. for procedural purposes only pursuant to Bankrutpcy Rule 1015(b),
Local Rule 1015-1, and the Order (I) Directing Joint Administration of Chapter 11 Cases and (II)
3
May 27, 2025 is the Claim Objection Deadline for all Claims other than Administrative Claims. See Plan, Art.
VII.E.
2
Case 24-11217-BLS Doc 971 Filed 01/24/25 Page 3 of 7
Granting Related Relief [Docket No. 84] entered by the Court on June 11, 2024. The Debtors
operated their business and managed their properties as debtors in possession pursuant to sections
1107(a) and 1108 of the Bankruptcy Code.
3. On June 26, 2024, the Office of the United States Trustee for the District of
Delaware (the “U.S. Trustee”) appointed an official committee of unsecured creditors in the
chapter 11 cases [Docket No. 121] (the “Committee”).4 On October 30, 2024, the Court appointed
a fee examiner [Docket No. 690]. No trustee has been appointed in these chapter 11 cases.
4. On November 14, 2024, the Court entered the Confirmation Order.
5. On November 27, 2024 (the “Effective Date”), the Plan became effective in
accordance with its terms [Docket No. 810].
6. On the Effective Date, David M. Barse, in his capacity as Plan Administrator,
became the sole representative of the Debtors’ estates for the purpose of, inter alia, reconciling
claims filed against the Debtors’ estates and facilitating distributions in accordance with the Plan.
See Plan, Art. IV.E., VII.
7. Pursuant to Article I.A.6. of the Plan, the Plan Administrator’s deadline for filing
objections to requests for payment of Administrative Claims “shall be the later of (a) 60 days after
the Effective Date [i.e., January 27, 2025]5 and (b) 60 days after the Filing of the applicable request
for payment of the Administrative Claims” (the “Administrative Claims Objection Bar Date”).
8. To date, approximately fifty Administrative Claims, including claims asserted
under section 503(b)(9) of the Bankruptcy Code, have been filed in these chapter 11 cases.
4
Pursuant to Art. IV.I. of the Plan, except for certain limited purposes including to prosecute fee applications, the
Committee dissolved on the Effective Date (as defined herein).
5
Because 60 days after the Effective Date falls on Sunday, January 26, 2025, the Administrative Claims Objection
Bar Date rolls until the next business day – i.e., Monday, January 27, 2025. See FED. R. BANKR. P. 9006(a).
3
Case 24-11217-BLS Doc 971 Filed 01/24/25 Page 4 of 7
RELIEF REQUESTED
9. By this Motion, the Plan Administrator respectfully requests that the Court enter
the Proposed Order extending the Administrative Claims Objection Bar Date to May 27, 2025,
which is the same date as the Claims Objection Deadline for non-Administrative Claims.
BASIS FOR RELIEF
10. Bankruptcy Rule 9006(b)(1) provides that the Court can extend unexpired time
periods as follows:
when an act is required or allowed to be done at or within a specified
period by these rules or by a notice given thereunder or by order of
court, the court for cause shown may at any time in its discretion ...
with or without motion or notice order the period enlarged if the
request therefor is made before the expiration of the period
originally prescribed or as extended by a previous order . . . .
FED. R. BANKR. P. 9006(b)(1)6. As discussed below, good and sufficient cause exists to extend
the Administrative Claims Objection Bar Date.
11. Immediately following the Effective Date, the Plan Administrator began to
identify and resolve pending issues required to implement the Plan. Among other things, the Plan
Administrator worked with international professionals to address immediate matters as to the
Debtors’ international affiliates. The Plan Administrator has been working with tax professionals
to address ongoing tax obligations, including filing extensions. The Plan Administrator has also
been working with the purchasers of the Debtors’ assets pursuant to the terms of transition services
agreements.
12. Also following the Effective Date, the Plan Administrator commenced his review
and reconciliation of certain claims asserted against the Debtors’ estates, including Administrative
6
Pursuant to Local Rule 9006-2, the filing of this Motion prior to the Administrative Claims Objection Bar Date
serves to extend automatically the Administrative Claims Objection Bar Date until such time as the Court rules
on this Motion. See DEL. BANKR. LR 9006-2.
4
Case 24-11217-BLS Doc 971 Filed 01/24/25 Page 5 of 7
Claims. To date, the Plan Administrator has reconciled and paid numerous claims asserted under
section 503(b)(9) of the Bankruptcy Code, and has been working closely with counsel to review
and reconcile remaining administrative and priority unsecured claims, and prepare objections or
responses to such claims where appropriate.
13. In light of the foregoing, the claims reconciliation process is ongoing and the Plan
Administrator requires additional time to effectively review, resolve and/or object to
Administrative Claims. Notwithstanding, the Plan Administrator will endeavor to reconcile and
pay undisputed Administrative Claims as soon as practicable. Thus, the requested extension will
not prejudice any creditor or other party in interest. Absent an extension, the Plan Administrator
may forfeit valuable potential claim objections to the detriment of the Debtors’ other, legitimate
stakeholders. As such, an extension of the Administrative Claims Objection Bar Date will
preserve estate assets by ensuring that all proper claim objections are asserted, and only legitimate
Administrative Claims are paid.
14. In addition, creating one unified objection deadline for all claims – both
Administrative Claims and non-Administrative Claims – will streamline the claims reconciliation
process, lessen the administrative burden on the Plan Administrator, and avoid multiple and
duplicative claim objections.
15. For the reasons set forth herein, the Plan Administrator believes that an extension
of the Administrative Claims Objection Bar Date through and including May 27, 2025 is necessary
and appropriate. Similar relief has been granted in this District. See, e.g., In re Fisker, Inc., Case
No. 24-11390 (TMH) (Bankr. D. Del. Dec. 4, 2024) [Docket No. 817] (extending the
administrative claim objection deadline 150 days); In re Allena Pharmaceuticals, Inc., Case No.
22-10842 (KBO) (Bankr. D. Del. June 3, 2024) [Docket No. 415] (extending the administrative
5
Case 24-11217-BLS Doc 971 Filed 01/24/25 Page 6 of 7
claim objection deadline 120 days); In re Insys Therapeutics, Inc., Case No. 19-11292 (JTD)
(Bankr. D. Del. May 14, 2021) [Docket No. 1661] (extending administrative claim objection
deadline).
NO PRIOR REQUEST
16. No prior request for the relief requested herein has been made by the Plan
Administrator to this or any other court.
NOTICE
17. Notice of the Motion will be provided to: (i) the U.S. Trustee; (ii) all parties
entitled to notice under Bankruptcy Rule 2002 and Local Rule 2002-1(b); and (iii) parties that have
filed Administrative Claims. The Plan Administrator submits that no further notice is required.
CONCLUSION
WHEREFORE, the Plan Administrator respectfully requests that the Court enter the
Proposed Order, substantially in the form attached hereto as Exhibit A, extending the
Administrative Claims Objection Bar Date through and including May 27, 2025 and granting such
other and further relief as may be just and proper.
Dated: January 24, 2025
Wilmington, Delaware
COLE SCHOTZ P.C.
/s/ Stacy L. Newman
Patrick J. Reilley (No. 4451)
Stacy L. Newman (No. 5044)
500 Delaware Avenue, Suite 1410
Wilmington, DE 19801
Telephone: (302) 652-3131
Facsimile: (302) 652-3117
preilley@coleschotz.com
snewman@coleschotz.com
- and -
6
Case 24-11217-BLS Doc 971 Filed 01/24/25 Page 7 of 7
Matteo Percontino, Esq. (Admitted Pro Hac Vice)
Court Plaza North, 25 Main Street
Hackensack, NJ 07601
Telephone: (201) 489-3000
Facsimile: (201) 489-1536
mpercontino@coleschotz.com
Counsel to David M. Barse, solely in his capacity as
the Plan Administrator of Vyaire Medical, Inc., et al.
7
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