Tricida committee objects to investment banker’s proposed fees

By Sarah Lizee

Olympia, Wash., Feb. 6 – Tricida, Inc.’s application to retain Miller Buckfire as investment banker drew an objection on Friday from the official committee of unsecured creditors, according to documents filed with the U.S. Bankruptcy Court for the District of Delaware.

The committee said it supports the debtor seeking to retain a qualified investment banker to help with the sale of its assets.

However, the committee is concerned over the locked-in, flat fee of $2 million proposed to be paid to Miller Buckfire.

This fee is in addition to a $100,000 monthly fee and the payment of over $300,000 of prepetition fees and expenses.

“The proposed fee structure is not reasonable, nor the product of a valid exercise of the debtor’s business judgment, and the debtor has failed to carry its burden of proof,” the committee said in its objection.

The committee said it has been in discussions with the debtor and Miller Buckfire over the fees.

The San Francisco-based pharmaceutical company filed bankruptcy on Jan. 11 under Chapter 11 case number 23-10024.

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