Oscient Pharmaceuticals' official committee opposes exclusivity

By Lisa Kerner

Charlotte, N.C., Feb. 12 - Oscient Pharmaceuticals Corp.'s official committee of unsecured creditors moved to terminate the debtors' exclusivity so that the committee may file a straightforward liquidating plan, according to a Friday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

Oscient has requested an extension to its exclusive periods to file and solicit votes on its reorganization plan.

The company wants to extend its exclusive filing period to May 11 from Feb. 10 and the solicitation period to July 8 from April 9.

The committee's plan "will allow creditors to continue to pursue valuable litigation against Paul Royalty [Fund Holdings II] that the debtors' plan gives away too cheaply," the filing said.

Oscient filed a liquidating plan of reorganization and related disclosure statement on Wednesday.

As previously reported, under the plan Oscient will liquidate its estates and distribute remaining assets to creditors.

The plan also incorporates a settlement with debtor Guardian II Acquisition Corp. and Paul Royalty that will increase the recovery for unsecured creditors to 18.9% from 9.6% and reduce the amount of claims against Oscient by $49.7 million through Paul Royalty's waiver of 80% of its claim.

Oscient, a Waltham, Mass., commercial-stage pharmaceutical company, filed for bankruptcy on July 13, 2009. Its Chapter 11 case number is 09-16576.

© 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.