Pre-Ch. 11 Debt Roll-Up In Telepresence Co. DIP Turned Down
Law360 (February 27, 2020, 4:29 PM EST) — Bankrupt “telepresence robot” business Suitable Technologies Inc. lost a bid Thursday to roll claims from prepetition spending on Chapter 11 preparations into an interim part of a nearly $6 million post-petition loan from its founder to finance the case in Delaware.
U.S. Bankruptcy Judge Mary F. Walrath rejected Suitable’s proposal during an initial case hearing, citing concerns about company founder and debtor-in-possession lender Scott Hassan’s multiple, insider roles and interests in the proceedings.
Those factors — and the court’s general skepticism over roll-ups of prepetition debt into DIP loans — sank Suitable’s proposal to pack about $1.66 million of recent prepetition…