Dendreon liquidation plan will distribute $495 million from asset sale

By Kali Hays

New York, March 10 – Dendreon Corp. filed a Chapter 11 plan of liquidation and related disclosure statement on March 10 with the U.S. Bankruptcy Court for the District of Delaware.

The premise of the plan is to distribute the proceeds from the company’s $495 million sale of substantially all of its assets to Valeant Pharmaceuticals International, Inc., a wholly owned subsidiary of Drone Acquisition Sub Inc.

As previously reported, Valeant was the stalking horse bidder for the assets and the sale closed on Feb. 23.

The purchase price was comprised of a cash payment made at closing of $445.5 million and $49.5 million in common shares of Valeant issued to Dendron on the effective date and subsequently distributed to creditors.

Treatment of creditors under the plan will include the following:

• Holders of allowed administrative claims, priority tax claims and non-priority tax claims will receive full payment in cash equal to any unpaid portion of the face amount of a claim;

• Holders of allowed secured claims will receive full payment in cash or a return of the collateral securing the claim;

• Holders of allowed 2016 noteholder claims will receive a proportionate share of 100% of Valeant common shares totaling $49.5 million and a proportionate share of available cash if needed to meet total distributable value;

• Holders of general unsecured claims will receive a proportionate share of available cash; and

• Holders of intercompany claims, subordinated claims and interest claims will receive no distribution.

A hearing to approve the disclosure statement is set for April 14 and a confirmation hearing is scheduled for June 2.

Dendreon, a Seattle-based biotechnology company that focuses on novel therapeutics to enhance cancer treatment options, filed for bankruptcy on Nov. 10. The Chapter 11 case number is 14-12515.

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