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Molecular Insight's amended plan of reorganization confirmed by court
By Lisa Kerner
Charlotte, N.C., May 5 - Molecular Insight Pharmaceuticals, Inc.'s first amended plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Massachusetts, according to an attorney familiar with the case.
The disclosure statement was approved on March 23.
As previously reported, under the first amended plan of reorganization:
• Consenting bondholders and their affiliates will provide $40 million of new capital under a five-year exit commitment. Interest on the exit facility will be 17.5%;
• The company's bonds will be converted into 100% of the new equity in the reorganized Molecular Insight;
• Holders of general unsecured claims will receive their share of $500,000 in cash; and
• Existing equity interests will be canceled and holders will receive no distribution.
A previously approved bondholders' support agreement requires the plan to take effect by May 16.
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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