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

KaloBios Pharmaceuticals Plan Confirmed

The U.S. Bankruptcy Court confirmed KaloBios Pharmaceuticals' Second Amended Plan of Reorganization. As previously reported, "Each Holder of an Allowed General Unsecured Claim will receive on the later of the Effective Date or the first reasonably practicable Distribution Date after such Claim becomes an Allowed General Unsecured Claim, in full and final satisfaction and discharge of such Allowed General Unsecured Claim, value equal to 100% of the Allowed amount of such Claim in the form of: (i) Cash equal to 50% of the Allowed amount of such Allowed General Unsecured Claim plus (ii) a Company Note in an original principal amount equal to the 50% of the Allowed amount of such Allowed General Unsecured Claim, bearing interest at the rate of 10% per annum, paid in kind….A central feature of the Plan is the conversion of the approximately $3 million DIP Facility and $11 million Exit Facility into shares of common stock of KaloBios--referred to in the Plan as the Primary Plan Sponsor New Common Stock. The Primary Plan Sponsor New Common Stock is subject to anti-dilution protections and, with limited exceptions, will remain fixed at approximately 64% of the Total Common Stock3 of the Reorganized KaloBios as of the Effective Date. Accordingly, the percentage of Total Common Stock that will be available for Holders of Existing Common Stock, Class 9 Common Stock, and all Classes of Claims who receive Remaining New Common Stock under the Plan will be approximately 36% of the Total Common Stock of the Reorganized KaloBios as of the Effective Date." This biopharmaceutical provider filed for Chapter 11 protection on December 29, 2015, listing $43 million in pre-petition assets.

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