Tang Capital's stake in Aradigm falls to zero in wake of Lehman Brothers bankruptcy

By Angela McDaniels

Tacoma, Wash., Nov. 17 - Aradigm Corp. investors Tang Capital Partners, LP and Tang Capital Management, LLC no longer own any shares of the company's stock, according to a schedule 13D/A filing with the Securities and Exchange Commission.

Tang Capital Management manager Kevin Tang continues to beneficially own 902,500 shares, or 1.6%, of the company.

Tang Capital said it previously held 5.31 million shares of Aradigm stock in an account at Lehman Brothers International (Europe), which was placed into administration on Sept. 15 in tandem with the bankruptcy of Lehman Brothers Holdings Inc.

Tang Capital has been advised that most of these shares were rehypothecated and that Lehman Brothers Interantional's customers will not be able to recover rehypothecated shares but instead will be entitled to a general unsecured claim for those shares.

In late August, the investors said they might suggest or discuss potential changes to the company's business and strategic alternatives including a sale of the company, a corporate restructuring, spinoff or a potential change of control.

At the time, Tang Capital had an 11.3% interest in Aradigm, which is a Hayward, Calif.-based developer of non-invasive delivery systems for self-administration of biopharmaceuticals and small molecules.

© 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.