Synergy disclosure statement approved; plan hearing set for April 23

By Caroline Salls

Pittsburgh, March 13 – Synergy Pharmaceuticals Inc. obtained court approval of the disclosure statement for its third amended plan of reorganization, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

The plan confirmation hearing is scheduled for April 23.

Administrative claims, debtor-in-possession financing claims, other secured claims, priority tax claims and other priority claims will be paid in full in cash.

Holders of term loan claims will receive a share of excess sale proceeds and a share of an administrative and priority claims reserve.

Holders of general unsecured claims will receive beneficial interests in a litigation trust and a share of excess sale proceeds.

Holders of intercompany claims and intercompany interests will receive no distribution.

Holders of existing interests will receive a share of any excess sale proceeds remaining after payment in full of general unsecured claims.

Synergy is a New York-based biopharmaceutical company focused on the development and commercialization of novel gastrointestinal therapies. The company filed bankruptcy on Dec. 12 under Chapter 11 case number 18-14010.

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