Aphton emerges from bankruptcy

By Caroline Salls

Pittsburgh, April 10 - Aphton Corp. emerged from Chapter 11 bankruptcy when its plan of liquidation took effect Monday, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on March 29.

Aphton will distribute $100,000 to $250,000 in cash to creditors.

In addition, the plan administrator may liquidate the company's remaining assets, including litigation claims, avoidance actions, intellectual property, collection of deposits and return of escrowed funds and miscellaneous physical assets.

Holders of administrative, secured and unsecured priority claims will be paid in full.

Holders of general unsecured claims will receive their share of the plan administrator assets in one or more distributions, depending on the amount of reserves necessary for payment of disputed claims and estimates of plan administrator costs and expenses.

If all other claims are paid in full, which the company said is unlikely, holders of subordinated claims will receive the remaining plan administrator assets.

Equity interests will be canceled, and holders will receive no distribution.

Aphton, a Philadelphia-based biopharmaceutical company, filed for bankruptcy on May 23, 2006. Its Chapter 11 case number is 06-10510.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.