Vion Pharmaceuticals statement approved; confirmation hearing April 6

By Caroline Salls

Pittsburgh, March 1 - Vion Pharmaceuticals Inc.'s disclosure statement was approved Monday by the U.S. Bankruptcy Court for the District of Delaware.

The plan of liquidation confirmation hearing is scheduled for April 6.

Under the plan, the company's remaining assets, which consist mainly of sale proceeds, will be transferred to a liquidating trust and distributed to creditors.

Creditor treatment will include:

• Holders of administrative claims, priority tax claims and priority claims will recover 100% in cash;

• Holders of secured claims will recover 100% either in cash or through the return of the collateral securing the claim;

• Holders of general unsecured claims, including notes claims, will recover 13% to 17% through a share of distributable cash; and

• Holders of interests and interest-related claims arising from common stock will receive no distribution.

Vion, a New Haven, Conn., drug development company, filed for bankruptcy on Dec. 17. Its Chapter 11 case number is 09-14429.

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