Molecular Insight files reorganization plan based on Savitr investment

By Caroline Salls

Pittsburgh, Feb. 3 - Molecular Insight Pharmaceuticals, Inc. filed its plan of reorganization and related disclosure statement Thursday with the U.S. Bankruptcy Court for the District of Massachusetts.

As previously reported, Molecular Insight received court approval last month to assume an investment agreement with Savitr Capital LLC.

Savitr has agreed to purchase 90% of the company's equity capital for $45 million, conditioned upon the replacement of the company's $195 million of existing bonds, including all accrued pay-in-kind interest, with $90 million principal amount of secured notes.

Treatment of creditors will include:

• Holders of administrative expense claims, priority tax claims and other priority claims will be paid in full in cash;

• Holders of other secured claims will either be paid in full in cash, receive the collateral securing their claims or have their claims otherwise rendered unimpaired;

• Holders of secured bond claims will receive a share of $45 million in tranche A initial new bonds, and all adequate protection amounts due under the company's cash collateral order will be paid in full in cash;

• Holders of general unsecured claims will receive a share of $55 million in tranche B initial new bonds and contingent bond rights;

• Holders of convenience claims of less than $20,000 will recover 65% in cash;

• Holders of an Onalta/Europe dispute claim will receive a 30% interest in a new joint venture entity and the right to milestone payments for that entity tied to Onalta gross sales; and

• Holders of Section 510(b) claims and old Molecular Insight equity interests will receive no distribution.

Molecular Insight, a Cambridge, Mass.-based clinical-stage biopharmaceutical company focused on molecular medicine, filed for bankruptcy on Dec. 9. The Chapter 11 case number is 10-23355.

© 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.