Exaeris, Inyx USA get court OK for $1.5 million more in DIP financing to pay bills

By Reshmi Basu

New York, Aug. 23 - Exaeris, Inc. and Inyx USA, Ltd.'s Chapter 11 trustee received court approval for the parent company Inyx, Inc.'s subsidiaries to obtain $1.5 million in interim debtor-in-possession financing to pay bills, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As reported earlier, the funding would come from Westernbank Puerto Rico. On Aug. 15, at the request of the U.S Trustee, the bank provided emergency funding to cover Inyx USA's payroll, which was past due.

Interest on the DIP facility will be Base rate plus 50 basis points. And Westernbank's commitment to provide financing to the Inyx subsidiaries expires on Oct. 31.

The trustee said the $1.5 million loan would carry the company through Aug. 31.

CEO objects to loan

Meanwhile, according to an objection filed prior to Thursday's hearing, Inyx, Inc. chief executive officer Jack Kachkar objected to the loan, saying that it would undermine his status as a creditor.

In early July, he provided up to $2 million in DIP financing. In exchange for the loan, Kachkar would receive a super-priority administrative expense claim up to the amount actually borrowed by the company, which would be secured by a lien on all post-bankruptcy property.

In Thursday's court papers, Kachkar said that, according to the terms of the Westernbank financing, the Puerto Rico-based bank would get paid before existing creditors. The new loan essentially would be made a priming lien, which means that it would be given a priority over others.

He added that the Westernbank loan would take away collateral from his loan.

Inyx, Inc. is a pharmaceutical company based in New York that develops drug delivery technologies and products for the treatment of respiratory, allergy, dermatological, topical and cardiovascular conditions.

Its subsidiaries - Exaeris and Inyx USA - were placed in bankruptcy on July 2, and their Chapter 11 case number is 07-10887.

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