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Teligent, lender object to committee’s attempt to recover reserve payments
By Sarah Lizee
Olympia, Wash., Feb. 8 – Teligent, Inc. and prepetition first-lien agent ACF FinCo I LP objected to the official committee of unsecured creditors’ motion seeking standing to prosecute and settle claims against the first-lien lenders on behalf of the debtors’ estates, according to court documents filed with the U.S. Bankruptcy Court for the District of Delaware.
The motion seeks to recover damages the debtors purportedly sustained in relation to the first-lien lenders’ alleged breach of a credit agreement through two $5 million fund reserves that the committee says were established in bad faith.
The committee claims the debtors suffered damages as a result of the $10 million of reserve payments, but Teligent argued that the payments simply reduced the debt under the first-lien credit agreement by an amount equal to the reserve payments.
Teligent said that while the committee suggests that a number of alleged infirmities throughout the Chapter 11 process justify prosecution of the complaint and would materially enhance recoveries to general unsecured creditors, it doesn’t provide an analysis demonstrating the impact of the claims, if successful, upon recoveries, or address the costs associated with the proposed litigation.
Likewise, ACF said the committee has failed to uncover any colorable claims against the lenders that would materially benefit unsecured creditors and justify the “litigation at all costs” course the committee is seeking.
Teligent is a Buena, N.J.-based specialty generic pharmaceutical company. The company filed bankruptcy on Oct. 14 under Chapter 11 case number 21-11332.
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