Oscient gets brief exclusivity extension, must fight case conversion

By Caroline Salls

Pittsburgh, March 11 - Oscient Pharmaceuticals Corp.'s exclusive plan of reorganization filing period was extended to April 14 Wednesday, but the U.S. Bankruptcy Court for the District of Massachusetts has ordered the company to prove why its Chapter 11 bankruptcy case should not be converted to Chapter 7.

The show cause hearing is scheduled for April 14. A hearing on a motion by Oscient's official committee of unsecured creditors to terminate the company's exclusivity will also be held on April 14.

As previously reported, the committee asked the court to terminate Oscient's exclusivity in February so the creditor group could file a straightforward liquidating plan.

This request came after the company asked the court to extend its exclusive filing period to May 11 from Feb. 10 and the plan vote solicitation period to July 8 from April 9.

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

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