Vivus secures emergency court approval of stock trading restrictions

By Caroline Salls

Pittsburgh, July 9 – Vivus, Inc. obtained emergency court approval of stock transfer notification procedures and restrictions, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Vivus said its existing NOL Rights Plan will remain in place until completion of the trading of its shares.

The company said this plan will continue to provide that if any person or group acquires 4.9% or more of the company’s outstanding common stock, there would be a triggering event potentially resulting in significant dilution in the voting power and economic ownership of that person or group.

Any prohibited transfer made on or after July 7 would be null and void without notice and approval by the company and may lead to contempt, compensatory damages, punitive damages or sanctions being imposed by the court.

A further hearing is scheduled for July 10.

Campbell, Calif.-based Vivus is a pharmaceutical company that filed bankruptcy on July 7. The Chapter 11 case number is 20-11779.

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