| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for MediCor Ltd. > News item |
MediCor creditors committee decries DIP amendment's leverage shift
By Caroline Salls
Pittsburgh, Dec. 17 - MediCor Ltd.'s official committee of unsecured creditors objected to the company's request to amend its debtor-in-possession financing to increase the commitment to $5 million from $2.2 million, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.
According to the objection, the DIP amendment "would change the playing field and unfairly leverage the committee's position in the plan process."
Specifically, the committee said the DIP amendment would allow the company to implement aspects of a business/restructuring plan that have not been fully explained to the committee or agreed to by parties to MediCor's plan negotiations.
As a result, the committee said the plan could substantially enhance lender Silver Oak Capital LLC's leverage over the company, its affiliates and its assets.
The committee said the company and its affiliates are looking to grant Silver Oak liens on the assets of various non-debtor affiliates, which were not granted under the original DIP facility or $54 million in pre-bankruptcy financing from Silver Oak.
In addition, the committee said Silver Oak's super-priority administrative leverage against MediCor's estates would be increased.
The committee also argued that the DIP motion lacks information on the material terms of a proposed settlement with secured lender BNP Paribas and the basis for the selection of a new interim chief executive officer for some of MediCor's non-debtor affiliates, both of which could be crucial to plan negotiations.
MediCor, a North Las Vegas, Nev., health care company that makes and sells products for the aesthetic, plastic and reconstructive surgery and dermatology markets, filed for bankruptcy on June 29. Its Chapter 11 case number is 07-10877.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.