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

Unilife Plan Confirmed, Summarized

The U.S. Bankruptcy Court confirmed Unilife's First Amended Combined Disclosure Statement and Chapter 11 Plan of Liquidation, which notes, "This Combined plan and Disclosure Statement contemplates the creation of a Liquidation Trust from which, pursuant to the terms of this Combined Plan and Disclosure Statement and the Liquidation Trust Agreement, distributions shall be made for the benefit of holders of various allowed claims. On or as soon as practicable after the Effective Date, the Debtors shall pay the administrative expense claims allowed as of the effective date, fund the professional fee reserve and the wind down Reserve, and transfer the Liquidation Trust Funding amount to the Liquidation Trustee….This Combined Plan and Disclosure Statement provides for the liquidation of the Debtors under chapter 11 of the Bankruptcy Code. Although a case under chapter 7 of the Bankruptcy Code would also entail the Debtors' liquidation, the Debtors believe that their liquidation under chapter 7 would be costlier and more time-consuming than the process provided for herein and, as a result, Creditors would be disadvantaged were a chapter 7 liquidation to be pursued instead….Further, any distribution to Creditors in a chapter 7 case is likely to be delayed due to time necessary for the trustee and his or her advisors to get 'up to speed' and the absence of certain deadlines imposed by the plan. Accordingly, the Debtors believe that in a chapter 7 liquidation, holders of claims and equity interests would receive less than such holders would receive under the Combine Plan and Disclosure Statement." This drug delivery systems' manufacturer filed for Chapter 11 protection on April 12, 2017, listing $88 million in pre-petition assets. Visit BankruptcyData for the full Plan Summary.

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