Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Pharmaceuticals, Biotechnology & Life Sciences

Savient Pharmaceuticals Plan Filed

Savient Pharmaceuticals filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Liquidation and related Disclosure Statement. According to the Disclosure Statement, “The plan contemplates and is predicated upon entry of an order substantively consolidating the Debtors’ estates and chapter 11 cases for all purposes, including voting, distribution and confirmation. On the effective date, (i) all intercompany claims between the Debtors shall be eliminated, (ii) all assets and liabilities of the affiliate Debtor shall be merged or treated as if they were merged with the assets and liabilities of Savient, (iii) any obligation of a Debtor and any guarantee thereof by the other Debtor shall be deemed to be one obligation of Savient, and any such guarantee shall be eliminated, (iv) the issued and outstanding shares of stock of the affiliate Debtor shall be cancelled, (v) each claim filed or to be filed against any Debtor shall be deemed filed only against Savient and shall be deemed a single claim against and a single obligation of Savient and (vi) any joint or several liability of the Debtors shall be deemed one obligation of Savient.” Also according to the Disclosure Statement, the Court-approved global settlement, under which the settlement parties agreed to support consummation of the Liquidation Plan, provides that in the event that the Plan effective date does not occur on or before June 30, 2014 (or a later date agreed to by the settlement parties), the settlement parties will create an unsecured creditor vehicle or similar trust structure to facilitate distribution of certain assets to general unsecured creditors. The Court scheduled a May 19, 2014 hearing to consider the Plan. Interested parties must submit ballots and/or objections by May 5, 2014.

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