NanoString: Unsecured creditors committee objects to DIP financing

By Sarah Lizee

Olympia, Wash., Feb. 29 – NanoString Technologies, Inc.’s motion for final approval of a $142.5 million debtor-in-possession financing package drew an objection from the official committee of unsecured creditors, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The committee said the DIP financing motion aims to elevate the prepetition claims of the holders of 6.95% notes due 2026 before resolution of the committee’s forthcoming challenges.

The motion also seeks to restrict the exercise of the committee’s fiduciary duties in the cases, the committee said.

“The prepetition 2026 notes parties entered these cases with the irrefutable knowledge that their claims and liens would be challenged – and likely challenged successfully – by the official committee of unsecured creditors that would be appointed in these Chapter 11 cases,” the group said in the objection.

NanoString Technologies is a Seattle-based biotech company specializing in cancer diagnostic tools. The company filed bankruptcy on Feb. 4 under Chapter 11 case number 24-10160.

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