Vyaire - Motion to Extend Claim Objection Deadline
- Date
- 2025-05-07
Summary
A motion by the Plan Administrator of Vyaire Medical, Inc., et al. in In re Vyaire Medical, Inc., Case No. 24-11217 (BLS), in the U.S. Bankruptcy Court for the District of Delaware, filed April 8, 2025 as Doc 1058, with a hearing date of May 7, 2025. It is the Plan Administrator's first motion to extend the Claims Objection Deadline and second motion to extend the Administrative Claims Objection Deadline. The motion asks the Court to extend the Administrative Claims Objection Bar Date to August 25, 2025 and the Claims Objection Deadline to November 24, 2025, citing sections 105 and 502 of the Bankruptcy Code and Bankruptcy Rules 3007 and 9006. It describes the claims reconciliation work since the plan's November 27, 2024 Effective Date and states that general unsecured claims are deferred pending clarity on available funds. A Proposed Order is referenced as Exhibit A.
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Case 24-11217-BLS Doc 1058 Filed 04/08/25 Page 1 of 9
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
)
In re: ) Chapter 11
)
VYAIRE MEDICAL, INC.,1 ) Case No. 24-11217 (BLS)
)
Liquidating Debtor. )
)
) Hearing Date: May 7, 2025, at 9:30 a.m. (ET)
) Obj. Deadline: April 22, 2025, at 4:00 p.m. (ET)
PLAN ADMINISTRATOR’S (I) FIRST MOTION TO EXTEND THE CLAIMS
OBJECTION DEADLINE AND (II) SECOND 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 (i) Administrative Claims
Objection Bar Date for ninety (90) days through and including August 25, 2025 and (ii) Claims
1
This chapter 11 case is now being administered by the Plan Administrator pursuant to the terms of the Findings
of Fact, Conclusions of Law, and Order Approving the Debtors’ Disclosure Statement for, and Confirming the
Second Amended Joint Chapter 11 Plan of Vyaire Medical, Inc. and Its Debtor Affiliates Pursuant to Chapter 11
of the Bankruptcy Code [Docket No. 745] (the “Confirmation Order”). The Plan Administrator’s mailing address
is Vyaire Medical, Inc., Attn: David M. Barse, Plan Administrator, c/o Cole Schotz P.C., 500 Delaware Avenue,
Suite 1410, Wilmington, DE 19801
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 1058 Filed 04/08/25 Page 2 of 9
Objection Deadline for one-hundred and eighty-one (181)3 days through and included November
24, 2025. 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 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 Lcoal
Rule 3007-1.
BACKGROUND
4. On June 9, 2024, Vyaire Medical, Inc. and its affiliated debtors (collectively, the
“Debtors”) each commenced a voluntary case under chapter 11 of the Bankruptcy Code with the
Court.
5. On July 9, 2024, the Court entered the Order (I) Setting Bar Dates for Filing Proofs
of Claim, Including Under Section 503(b)(9), (II) Establishing Amended Schedules Bar Date and
Rejection Damages Bar Date, (III) Approving the Form of and Manner for Filing Proofs of Claim,
3
One-hundred and eighty days from the current Claims Objection Deadline is Sunday, November 23, 2025.
2
Case 24-11217-BLS Doc 1058 Filed 04/08/25 Page 3 of 9
Including Section 503(b)(9) Requests, and (IV) Approving Form and Manner of Notice Thereof
[Docket No. 227] (the “Bar Date Order”).
6. On November 14, 2024, the Court entered the Confirmation Order.
7. On November 27, 2024 (the “Effective Date”), the Plan became effective in
accordance with its terms [Docket No. 810].
8. On January 25, 2025, the Court entered a Final Decree Closing Certain Cases
[Docket No. 974], inter alia, closing all cases other than the above-captioned case and authorizing
that relief in connection with any of the Debtors be filed in the above-captioned case.
9. 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.
10. Pursuant to Article I.A.6. of the Plan, the Plan Administrator’s initial deadline for
filing objections to requests for payment of Administrative Claims was “the later of (a) 60 days
after the Effective Date [i.e., January 27, 2025]4 and (b) 60 days after the Filing of the applicable
request for payment of the Administrative Claims.” (the “Administrative Claims Objection Bar
Date”).
11. On February 11, 2025, the Court entered an Order Approving the Plan
Administrator’s First Motion to Extend the Administrative Claims Objection Deadline [Docket
No. 987], pursuant to which the (i) Administrative Claims Objection Bar Date was extended to
4
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 1058 Filed 04/08/25 Page 4 of 9
May 27, 2025, and (ii) deadline to respond to any motions or requests for payment of an
administrative claim was extended to May 27, 2025.
12. Pursuant to Article VII.E. of the Plan, the Plan Administrator’s deadline to file
objections to all Claims other than Administrative Claims (e.g. priority and non-priority general
unsecured claims and secured claims) is 180 days after the Effective Date (i.e. May 27, 2025)5 (the
“Claims Objection Deadline”). See Plan, Art. VII.E. The Plan permits the Court to extend the
Claims Objection Deadline upon a motion by the Reorganized Debtors. Id.
13. Since the Effective Date, the Plan Administrator has been diligently attending to
obligations under the Plan. The Plan Administrator has expended substantial time working with
international professionals to address immediate matters as to the Debtors’ international affiliate,
including winding down entities under local laws, working with tax professionals to address
ongoing tax obligations, including filing extensions, and attending to matters concerning the terms
of transition services agreements with purchasers of the Debtors’ assets.
14. In addition, the Plan Administrator has addressed and continues to address
numerous Administrative Claims and motions and requests for payment of Administrative Claims.
As to Administrative Claims alone, to date, approximately fifty Administrative Claims, and fifteen
(15) motions for allowance and payment of Administrative Claims, have been filed in these chapter
11 cases.
15. On January 27, 2025, the Plan Administrator filed The Plan Administrator’s First
Notice of Satisfaction of Claims addressing the satisfaction of numerous Bankruptcy Code section
503(b)(9) claims.
5
Because 180 days falls on May 26, 2025, a Court holiday, the Claims Objection Deadline rolls until the next
business day (i.e. May 27, 2025). See See FED. R. BANKR. P. 9006(a).
4
Case 24-11217-BLS Doc 1058 Filed 04/08/25 Page 5 of 9
16. On February 28, 2025, the Court entered orders approving the Plan Administrator’s
first and second omnibus objections to certain priority claims. See Docket Nos. 1001, 1002.
17. In addition, the Plan Administrator has already resolved more than fifty percent of
the motions for allowance and payment of Administrative Claims and has filed three objections.
18. As to the non-priority claims, as of the date of this filing, it is not clear what funds
will be available for distribution to allowed general unsecured claims under the Plan. The Plan
Administrator intends to defer the resolution of general unsecured claims until such time as it
becomes clear that funds will be available to distribute. Therefore, the Plan Administrator has
prioritized the claims reconciliation process with respect to administrative and priority claims and
with the assistance of his professionals is continuing to review, analyze and reconcile such claims
so that distributions may be made in compliance with the Plan. While the Plan Administrator is
seeking an extension of the Administrative Claims Objection Bar Date and the Claims Objection
Deadline, he does intend to address the remainder of the administrative and priority claims in the
near future.
RELIEF REQUESTED
19. By this Motion, the Plan Administrator respectfully requests that the Court enter
the Proposed Order extending the Administrative Claims Objection Bar Date to August 25, 2025,
and the Claims Objection Deadline to November 24, 2025, without prejudice to the right of the
Plan Administrator or any other party in interest to seek further extensions of such deadlines.
BASIS FOR RELIEF
20. Pursuant to section 502(a) of the Bankruptcy Code, “a claim or interest. . . is
deemed allowed, unless a party in interests . . . objects.” As stated above, the Plan expressly
established the Administrative Claims Objection Bar Date and the Claims Objection Deadline.
5
Case 24-11217-BLS Doc 1058 Filed 04/08/25 Page 6 of 9
The Plan also provided that the Claims Objection Deadline may be fixed by order of the Court,
implicitly recognizing that circumstances may warrant one or more extensions of time.
21. 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).
22. In addition, section 105(a) of the Bankruptcy Code provides that “[t]he court may
issue any order, process, or judgment that is necessary or appropriate to carry out the provisions
of this title.” 11 U.S.C. § 105(a). It is also generally recognized that “[s]ection 105(a) authorizes
the bankruptcy court, or the district court sitting in bankruptcy, to fashion such orders as are
required to further the substantive provisions of the Code.” See In re Morristown & E. R. Co., 885
F.2d 98, 100 (3d Cir. 1989) (citing Collier on Bankruptcy ¶ 105.04 at 105–15 & n.5 (15th rev. ed.
1989)).
23. The Plan Administrator respectfully submits that sufficient cause exists to extend
the Administrative Claims Objection Bar Date and the Claims Objection Deadline.
24. As discussed above, 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 also worked
with tax professionals to address tax filing obligations and has further tended to post-closing
6
Case 24-11217-BLS Doc 1058 Filed 04/08/25 Page 7 of 9
matters with the purchasers of the Debtors’ assets, including among other things, matters
concerning the terms of transition services agreements and asset purchase agreements.
25. Separately, the Plan Administrator has already commenced his review and
reconciliation of certain claims asserted against the Debtors’ estates, including Administrative
Claims and priority claims. Such claims contain multiple components and require a careful review
by the Plan Administrator and his professionals.
26. To date, the Plan Administrator has reconciled and paid numerous claims asserted
under section 503(b)(9) of the Bankruptcy Code, resolved more than one-half of the
Administrative Claims asserted by motion, filed three objections to administrative claim motions,
filed two omnibus claims objections, filed one notice of satisfaction of claims, and has been
working closely with his professional advisors to review and reconcile remaining administrative
and priority unsecured claims, and prepare objections or responses to such claims where
appropriate. With respect to the general unsecured claims, given the sheer volume of claims and
the uncertainty that any funds will be available for distribution to such creditors, the Plan
Administrator submits that an extension of time to review and object to such claims is appropriate.
27. 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 Claims,
including remaining Administrative Claims. Notwithstanding, the Plan Administrator will
endeavor to reconcile and pay undisputed Administrative Claims and priority 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.
7
Case 24-11217-BLS Doc 1058 Filed 04/08/25 Page 8 of 9
28. Based on the foregoing the Plan Administrator respectfully submits that cause
exists to extend the Administrative Claims Objection Bar Date and the Claims Objection Deadline
to August 25, 2025, and November 24, 2025, respectively.
PRIOR REQUESTS
29. This is the second request by the Plan Administrator to extend the Administrative
Claims Objection Bar Date.
30. No prior request to extend the Claims Objection Deadline has been made to this or
any other court.
NOTICE
31. 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 approving the Motion and
granting such other and further relief as may be just and proper.
Dated: April 8, 2025
Wilmington, Delaware
COLE SCHOTZ P.C.
/s/ Patrick J. Reilley
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
8
Case 24-11217-BLS Doc 1058 Filed 04/08/25 Page 9 of 9
- and -
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.
9
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