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Certa Dose: Bankruptcy court OKs appointment of Chapter 11 trustee
By Sarah Lizee
Olympia, Wash., Nov. 24 – Certa Dose, Inc.’s bankruptcy case will have a Chapter 11 trustee appointed, according to an order filed Wednesday by the U.S. Bankruptcy Court for the Southern District of New York.
As previously reported, creditor Copic Insurance Co., which the debtor has been feuding with since shortly after the petition date, sought the appointment of a Chapter 11 trustee.
Copic said that while it continues to believe that the case should be transferred to the District of Colorado, the pending request by Certa Dose to authorize a “highly suspect” post-petition loan from its sole principal, Dr. Caleb Hernandez, require the appointment of an independent Chapter 11 trustee “immediately.”
“Not only will this prevent Dr. Hernandez’s ongoing efforts to supplant the company’s legitimate creditors and further his own interests at the expense of the debtor and creditors, but it will provide an avenue for moving parties and all other interested parties to independently assess whether the company has any realistic prospects of successfully reorganizing,” the creditor said in its motion.
“Through his self-dealing and gross mismanagement of the affairs of the debtor, Dr. Hernandez continues to breach his fiduciary duties to all the creditors and has put creditors at risk of not being paid.”
Copic said that because it is in the best interests of creditors to have an independent third party operate and manage the debtor, it is seeking the emergency appointment of a Chapter 11 trustee.
The New York-based company develops, licenses and sells pharmaceutical products and technology. The company filed bankruptcy on May 30 under Chapter 11 case number 21-11045.
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