Inyx USA's liquidation plan confirmed by bankruptcy court

By Lisa Kerner

Charlotte, N.C., March 12 - Inyx USA, Ltd.'s plan of liquidation was confirmed, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the plan is based on a plan funding cash contribution by Westernbank Puerto Rico, which will be used to fund all administrative costs as of the plan effective date, to fund plan payments and to fund the initial operations of a liquidating trustee.

Unsecured creditors will receive 40% of net litigation recoveries and Westernbank will receive 60% of the net litigation recoveries on account of its deficiency claim.

Plan creditor treatment will include:

• Holders of administrative claims, priority tax claims and other priority claims will recover 100% in cash;

• The Westernbank secured claim will be satisfied with the sum of effective date cash and the net proceeds from any sale of the company's Manati property, minus the plan funding contribution. If the Manati property is not sold, Westernbank will receive the property instead;

• Holders of other secured claims will either receive the proceeds from the sale of the collateral securing the claim or full payment in cash;

• Holders of unsecured claims will receive a share of 40% of the net litigation recoveries;

• The Westernbank deficiency claim will be satisfied with 60% of the net litigation recoveries; and

• Holders of equity interests will receive no distribution.

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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