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Unilife Bankruptcy Examiner Appointment Sought

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Kahle Automation filed with the U.S. Bankruptcy Court an expedited motion to appoint an examiner for Unilife case. Kahle Automation holds a $4.2 million unsecured claim against Unilife.

Documents filed with the Court explain, “The statute’s requirements for the appointment of an examiner are that: (1) no trustee has been appointed; (2) no plan has been confirmed; (3) a party in interest or the United States Trustee has requested an examiner; and (4) either (i) appointment of an examiner is in the interests of the creditors of the estate or (ii) the debtor’s fixed, liquidated, unsecured debts to non-insiders exceed $5 million. The first three conditions are clearly satisfied in the instant matter – no trustee has been appointed, no plan has been confirmed, and a party in interest (Kahle) has requested the appointment of an examiner.”

In addition, “The first prong of the last condition is also satisfied, as more fully discussed below, because the appointment of an examiner is in the interests of the creditors of the estate, including Kahle. Prong two of the last condition may also be met in this case, although Kahle is unable at this time to confirm whether Debtors have more than $5 million in qualifying debt….Further, in the absence of a committee of unsecured creditors, it is critical that an examiner be appointed to cast an independent eye upon the Debtors’ decisions to waive their claims against the DIP lender, ROS Acquisition Offshore and Amgen, Inc. and to acquiesce to the claims of the DIP Lender and Amgen against Debtors.”

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