In a significant development in the Chapter 11 bankruptcy case of Nostrum Laboratories, Inc., the Official Committee of Unsecured Creditors filed a motion on January 21, 2025, seeking greater authority in the company's asset sale process. The filing, made in the U.S. Bankruptcy Court for the District of New Jersey (Case No. 24-19611-JKS), requests the committee be granted joint decision-making power alongside the debtor in overseeing the marketing of assets.
The motion, filed by Porzio, Bromberg & Newman, P.C., comes at a critical juncture as Nostrum Labs faces upcoming sale milestones under its cash collateral agreement with secured lender Citizens Bank, N.A. The January 20, 2025 deadline for receiving stalking horse bids has already passed, and a January 24 deadline looms for filing bidding procedures.
Adding urgency to the situation, Nostrum is now working with its third set of bankruptcy counsel since filing for Chapter 11 protection on September 30, 2024. The committee argues this revolving door of legal representation, combined with concerns about related-party transactions involving the CEO's family members, necessitates additional oversight of the sale process.
Investment banker Raymond James & Associates is currently marketing the company's assets. The committee's proposed framework would either grant it authority to directly instruct Raymond James or require the investment bank to consult with the committee in real-time on sale-related decisions.
The motion also proposes a streamlined dispute resolution process, allowing either the committee or debtor to quickly seek court intervention if disagreements arise over sale decisions.
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Document length: 14 pages