Eiger BioPharmaceuticals’ cash collateral motion draws lender objection

By Sarah Lizee

Olympia, Wash., April 2 – Eiger BioPharmaceuticals, Inc.’s motion to access cash collateral drew an objection from Innovatus Life Sciences Lending Fund I, LP, the only secured lender with an interest in the collateral, according to documents filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Texas.

Innovatus said it tried to negotiate terms for the debtors’ cash collateral use prior to the bankruptcy filing, but the debtors did not accept its proposal.

The lender said that approval of the debtors’ motion would deplete Innovatus’ cash collateral with no appreciable benefit to the lender in exchange.

“The debtors refused to engage with Innovatus, provide information that supports the debtors’ cash collateral assumptions, and generally inhibited Innovatus’s ability to analyze and approve the debtors’ interim cash collateral budget in advance of the bankruptcy filing,” the lender said in the objection.

The Palo Alto, Calif.-based biopharmaceutical company filed bankruptcy on April 1 under Chapter 11 case number 24-80040.

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