Path Medical seeks approval to use cash collateral through May 26

By Sarah Lizee

Olympia, Wash., March 30 – Path Medical, LLC is seeking approval to use the cash collateral of its prepetition secured lenders, including Medley Capital Corp., through May 26, according to an emergency motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Florida.

The company said the debtors require continued access to liquidity to ensure that they are able to continue operating their business during the Chapter 11 cases and preserve the value of their estates.

Without access to cash collateral, the debtors would be unable to satisfy employee compensation obligations and fund the administration of the cases.

The Fort Lauderdale, Fla.-based company provides acute trauma treatment and diagnostic imaging services to medical patients. The company filed bankruptcy on Aug. 28 under Chapter 11 case number 21-18338.

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