Inyx USA trustee asks court to approve $4.96 million DIP loan to fund operations through March 31

By Jennifer Lanning Drey

Portland, Ore., March 4 - Inyx USA, Ltd.'s Chapter 11 trustee requested court approval of up to $4.96 million in debtor-in-possession financing to take the company through March, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Westernbank Puerto Rico is the DIP lender.

Proceeds will be used to fund working capital and general corporate purposes.

Interest will be Base rate plus 50 basis points.

The DIP financing will mature on March 31, but Westernbank can extend the DIP facility through May to allow the trustee to continue to operate the company's businesses as a going concern.

In the motion, the trustee told the court that without the necessary funds to meet Inyx's payroll and other expenses, the company's manufacturing operations would grind to a halt, causing millions of dollars in inventory losses and damage to customer relationships.

Inyx USA is a subsidiary of New York-based pharmaceutical company Inyx, Inc. Inyx USA filed for bankruptcy on July 2, 2007, and its Chapter 11 case number is 07-10888.

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