Dendreon disclosure statement approved; plan hearing set for June 2

By Caroline Salls

Pittsburgh, April 15 – Dendreon Corp. obtained court approval of the disclosure statement for its plan of liquidation, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for June 2.

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.

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.

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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