Medical Device Startup Creditors Oppose Oaktree-Backed Deal

A junior creditor group is objecting to SiO2 Medical Products’ request to borrow $120 million to fund its bankruptcy, saying the loan agreement is too expensive and overly beneficial to lender and proposed buyer Oaktree Capital Management.

A proposed debtor-in-possession agreement between SiO2 and Oaktree has “excessive” fees and imposes unnecessary burdens on SiO2 and creditors, the company’s official committee of unsecured creditors said in a Friday filing in the US Bankruptcy Court for the District of Delaware. The $120 million loan agreement is part of a $350 million credit bid made by Oaktree to acquire the company out of ...