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Rockley Photonics responds to plan objection from investor group
By Sarah Lizee
Olympia, Wash., Feb. 28 – Rockley Photonics Holdings Ltd. responded to an objection to confirmation of its Chapter 11 plan from a group of seven investors in documents filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.
“The seven out of the money investors feign sincerity when claiming their motive in opposing confirmation is not to extract hold-up value, but to ‘require fundamental disclosures’ (that they have no standing to seek) and time to ‘consider multiple avenues to maximize value in a shortened time frame,’” the company said in its response.
“Nothing could be further from the truth. The objection is nothing more than a thinly veiled attempt to hijack the confirmation process for the investors’ own pecuniary interest.”
Rockley said that over the past year, the investors have not expressed interest in funding the debtors’ business in any material way, despite multiple opportunities.
The company said the investors have focused their efforts on delaying confirmation and conducting pre-litigation discovery for claims that will likely be pursued after the conclusion of the case.
“Using the cover of a proposed value maximizing transaction to conduct extensive pre-litigation discovery is an abuse of the bankruptcy system,” Rockley said.
A combined hearing on confirmation of the plan and approval of the disclosure statement is scheduled for March 3.
Cheshire, U.K.-based Rockley Photonics specializes in the research and development of integrated silicon photonics chipsets. The company filed bankruptcy on Jan. 23 under Chapter 11 case number 23-10081.
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