Cosmed Group, Inc., a Rhode Island-based sterilization and pasteurization services company operating three primary facilities (Linden, NJ; Erie, PA; Franklin, NJ), filed for Chapter 11 protection on November 14, 2024 in the Southern District of Texas, Houston Division (Case No. 24-90572) before Judge Christopher M. Lopez. The filing followed hundreds of personal injury lawsuits alleging ethylene oxide (EtO) emissions caused cancer and other injuries, with defense costs exceeding $2 million in 2024 and projected costs of $4.5M–$7M thereafter. New EPA emissions standards finalized in 2024 required compliance investments of $2.5M–$5M per facility. Cosmed lacked insurance coverage due to carrier exclusions and coverage disputes. At filing, the debtors carried approximately $6.73 million in prepetition secured debt. The debtors obtained a $7.5 million priming DIP facility from Zimmer Inc. at 8.0% base rate. Two 363 sales followed: Vapos acquired the Linden, NJ facility (closing June 13, 2025), and Lynx Medical Holdings, LLC acquired the Erie, PA and Franklin, NJ facilities (closing August 1, 2025) for $2.685 million financed through a Zimmer note with zero cash at closing. The case converted to Chapter 7 effective August 6, 2025.
