Orexigen Therapeutics amended plan of liquidation confirmed by court

By Sarah Lizee

Olympia, Wash., May 17 – Orexigen Therapeutics, Inc.’s amended plan of liquidation was confirmed on Friday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Orexigen will transfer its wind-down assets to a wind-down entity and create and fund specified reserves.

A wind-down administrator will implement the plan settlement reached with the official committee of unsecured creditors and will liquidate all wind-down assets, other than causes of action, a plan settlement initial funding amount and plan settlement proceeds.

The proceeds from the wind-down asset liquidation will be distributed to holders of pre-bankruptcy secured noteholder claims.

The administrator will also pursue causes of action and asset purchase agreement claims on behalf of the wind-down entity.

Plan settlement net proceeds, minus any settlement litigation reserve, will be distributed to holders of general unsecured claims, and, after payment in full of those claims, to holders of pre-bankruptcy subordinated secured noteholder deficiency claims.

Interest holders will retain no ownership in Orexigen and will receive no distribution under the plan.

Orexigen is a San Diego-based biopharmaceutical company focused on the treatment of obesity. The company filed for bankruptcy on March 12, 2018 under Chapter 11 case number 18-10518.

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