Molecular Insight Pharmaceuticals eyes May 20 bankruptcy exit

By Caroline Salls

Pittsburgh, May 6 - Molecular Insight Pharmaceuticals, Inc. expects to emerge from Chapter 11 bankruptcy on May 20, according to a company news release.

The company said the plan effective date is subject to completion of all closing conditions.

As previously reported, the company's plan of reorganization was confirmed on Thursday by the U.S. Bankruptcy Court for the District of Massachusetts.

Molecular Insight said the plan restructures its consolidated balance sheet by reducing outstanding debt by $162 million and facilitating a new $40 million capital infusion.

In addition, the company said the court approved an order that would restrict trading of its common stock under specified circumstances by entities holding more than 4.5% of the stock to preserve the full amount of net operating losses.

"The reorganization plan and new capital structure will allow Molecular Insight to emerge from Chapter 11 with the financial flexibility necessary to maximize our growth potential in the molecular medicine field," president and chief restructuring officer Harry Stylli said in the release.

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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