MediCor receives approval to double its DIP facility to $5 million

By Rebecca Melvin

New York, Jan. 4 - MediCor Ltd. received approval to raise its debtor-in-possession financing commitments to $5 million from $2.2 million and to extend the maturity by one month to Feb. 29, according to a Friday order of the U.S. Bankruptcy Court for the Southern District of Delaware.

The ruling by judge Mary F. Walrath stated that the DIP facility amendment motion was based on good faith and arm's length negotiations of the parties.

The official committee of unsecured creditors objected to the company's request to raise its DIP financing to $5 million, claiming it would allow the company to implement aspects of the business restructuring plan that have not been fully explained to the committee or agreed to by parties of MediCor's plan negotiations.

Furthermore, the committee of unsecured creditors claimed it would enhance lender Silver Oak Capital LLC's leverage over the company, its affiliates and its assets.

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, 2007. Its Chapter 11 case number is 07-10877.

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