Molecular Insight Pharmaceuticals bankruptcy exit effective May 20

By Lisa Kerner

Charlotte, N.C., May 23 - Molecular Insight Pharmaceuticals, Inc.'s first amended plan of reorganization became effective May 20, according to a Monday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

As previously reported, the company's plan of reorganization was confirmed on May 19.

Under the plan:

• 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.

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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