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Eye Care Leaders’ DIP financing motion draws U.S. trustee objection
By Sarah Lizee
Olympia, Wash., Feb. 12 – Eye Care Leaders Portfolio Holdings, LLC’s motion for final approval of a proposed $8 million debtor-in-possession facility drew an objection from Region 6 U.S. trustee Kevin M. Epstein, according to an order filed Monday with the U.S. Bankruptcy Court for the Northern District of Texas.
Epstein said he objects to the motion because lender Create Capital is granted a lien on the proceeds of avoidance actions under chapter 5 of the Bankruptcy Code, of which the lender will only avail itself if all of its other collateral is inadequate to repay the DIP financing in full.
“At a minimum, debtors should be required to produce evidence as to their analysis of potential avoidance actions and why they should not be preserved for the benefit of general unsecured creditors,” the U.S. trustee said in his objection.
The company has interim approval of the financing. A final hearing is scheduled for Feb. 15.
Eye Care Leaders is a Durham, N.C.-based practice management software provider for eye doctors. The company filed bankruptcy on Jan. 16 under Chapter 11 case number 24-80001.
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