MediCor creditors' receiver objects to exclusivity extension, cites lack of progress in case

By Caroline Salls

Pittsburgh, Jan. 8 - The receiver for several MediCor Ltd. creditors objected to the company's request for an extension to its exclusive periods to file a plan of liquidation and solicit votes on the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The objection was filed by Larry L. Bertsch, the court-appointed receiver for MediCor creditors Southwest Exchange, Inc., Blackstone Limited LLC, Sirius Capital, LLC and International Integrated Industries, LLC.

If the court does not deny the exclusivity extension motion, Bertsch said it should limit the extension by requiring the company to disclose information on an alleged non-qualified bid for MediCor's assets, to file an asset sale motion by Jan. 31 and to begin mediation with the receiver by Jan. 31.

Bertsch said he holds a lien on MediCor's businesses and assets because they were allegedly acquired by MediCor principal Donald McGhan "and his conspirators and accomplices" using trust money that belonged to Southwest Exchange and its clients.

Bertsch has filed a lawsuit asking the court to establish his superior trust and equitable lien interests in the MediCor assets, according to the objection.

In the objection, Bertsch said the company has never made him a proposal recognizing the value of his trust and creditor claims.

Bertsch said a further extension of MediCor's exclusivity would not benefit the company's estate and would not allow him to propose his own plan.

The receiver also cited the company's failed asset sale attempt in the objection, arguing that MediCor's Chapter 11 case has "languished."

In addition, Bertsch said he has received no information on an alleged offer by a non-qualified bidder for MediCor's assets.

Even if the offer does exist, the receiver said the liquidation of the company's assets can be completed without another exclusivity extension.

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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