MediCor Ltd. Files Chapter 11 Petition in Delaware
On June 29, 2007, MediCor Ltd., a Delaware corporation, and seven affiliated debtors filed voluntary petitions for bankruptcy under Chapter 11. Chief Judge Mary F. Walrath of the United States Bankruptcy Court for the District of Delaware has been assigned to these cases. The debtor’s petition described its businesses as “a global health care company that acquires, develops, manufactures and markets products primarily for esthetic, plastic and reconstructive surgery and dermatology markets.”
MediCor’s co-debtors are International Integrated Incorporated, International Integrated USA Incorporated, MediCor Management, Inc., MediCor Development Company, MediCor Aesthetics, III Acquisition Corporation and Intellectual Property International, Inc.
The debtors’ petitions list $120,354,097.00 in assets and $121,439,609.00 in debts. The largest creditors listed on the debtors’ creditors list are two noteholders listed as holding in excess of $80,000,000 in claims. Those noteholders are, respectively, Sirius Capital, LLC ('Sirius') and International Integrated Industries, LLC ('LLC'). According to MediCor’s 10-Q for the fiscal quarter ended September 30, 2006, LLC committed to fund any operating expenses and capital expenditures of MediCor through July 1, 2007. Sirius and LLC are entities in which MediCor’s chairman, Donald K. McGhan, has a controlling interest.
According to MediCor’s most recent 8-K, filed on March 2, 2007, the company continued to sustain losses, and needed additional financing to continue its operations. MediCor asserted that its illiquidity prevented it from filing its December 31, 2006 10-Q report. MediCor also reported in its most recent 8-K that it was working with Alvarez & Marsal LLC and its Senior Secured Note Holders to resolve its liquidity situation.
As of the morning of June 2, 2007, none of the debtors have filed any motions in their respective cases.
The debtors’ petitions list $120,354,097.00 in assets and $121,439,609.00 in debts. The largest creditors listed on the debtors’ creditors list are two noteholders listed as holding in excess of $80,000,000 in claims. Those noteholders are, respectively, Sirius Capital, LLC ('Sirius') and International Integrated Industries, LLC ('LLC'). According to MediCor’s 10-Q for the fiscal quarter ended September 30, 2006, LLC committed to fund any operating expenses and capital expenditures of MediCor through July 1, 2007. Sirius and LLC are entities in which MediCor’s chairman, Donald K. McGhan, has a controlling interest.
According to MediCor’s most recent 8-K, filed on March 2, 2007, the company continued to sustain losses, and needed additional financing to continue its operations. MediCor asserted that its illiquidity prevented it from filing its December 31, 2006 10-Q report. MediCor also reported in its most recent 8-K that it was working with Alvarez & Marsal LLC and its Senior Secured Note Holders to resolve its liquidity situation.
As of the morning of June 2, 2007, none of the debtors have filed any motions in their respective cases.
