AiBUY’s proposed $6.8 million DIP loan draws objection from trustee

By Sarah Lizee

Olympia, Wash., Nov. 28 – AiBUY Holdco, Inc.’s motion seeking final approval of a $6.8 million debtor-in-possession facility drew an objection on Wednesday from the U.S. trustee overseeing the case, according to documents filed with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, the company currently has access to $1.6 million of the facility, which is being provided by insider lender Stinv – Stocks Investment Ltd.

Region 6 U.S. trustee William T. Neary said he objects to the financing because, among other things, the proposed releases under the facility are impermissible under bankruptcy code and Fifth Circuit authority.

Neary also said a final order approving the financing would constitute a sub rosa plan because it contains releases that impermissibly bind non-debtor parties.

The Dallas-based digital marketing company made its voluntary Chapter 11 filing on Nov. 1 under case number 22-31737.

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