Liberty Medical Creditors Say $40M Asset Deal Should Stay Put

Law360, Wilmington (April 12, 2013, 10:12 PM EDT) -- Liberty Medical Supply Inc.'s creditors committee asked a Delaware bankruptcy judge Friday not to reject a prepetition option deal with Alere Inc. that would cancel a $40 million debt in exchange for certain assets, saying the assets must be valued through an auction before a decision is made.

While the committee had previously joined Liberty Medical's motion for rejection of the option agreement, the company's refusal to enact a sale process for the assets involved led it to alter its position, the committee says.

“The debtors...
To view the full article, register now.