Molecular Insight: court OKs $10 million DIP loan from bondholders

By Lisa Kerner

Charlotte, N.C., April 19 - Molecular Insight Pharmaceuticals, Inc. was granted court approval on Tuesday to obtain $10 million of debtor-in-possession financing from some of its bondholders, according to an attorney familiar with the case.

As previously reported, the bondholders have agreed to provide the DIP facility in connection with their plan of reorganization support agreement.

Molecular Insight said the DIP facility would provide capital infusions needed to maintain operations until its plan confirmation. The confirmation hearing is scheduled for May 5.

The DIP facility will mature on the earliest of May 16, the effective date of the plan of reorganization, the sale of substantially all company assets and the conversion of Molecular Insight's bankruptcy case.

Interest will be 17.5%.

NexBank, SSB is the DIP agent.

Molecular Insight, a Cambridge, Mass.-based clinical-stage biopharmaceutical company focused on molecular medicine, filed for bankruptcy on Dec. 9, 2010. The Chapter 11 case number is 10-23355.

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