Teligent disclosure statement hearing scheduled for April 27

By Sarah Lizee

Olympia, Wash., April 12 – The hearing on Teligent, Inc. and its official committee of unsecured creditors’ disclosure statement for its Chapter 11 plan has been scheduled for April 27, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan will be implemented by the approval of settlements with lender Ares Capital Corp. and asset purchaser Hikma Canada Ltd. A plan administrator and plan oversight committee will be appointed under the plan, which provides for the dissolution and wind-up of the affairs of the debtors.

All allowed administrative claims, allowed professional fee claims, allowed priority tax claims, allowed secured claims and allowed priority non-tax claims will be paid or otherwise satisfied as required by bankruptcy code.

Holders of allowed prepetition second-lien credit agreement claims will receive treatment under the Ares settlement. On the effective date, holders will receive payment of the second-lien distribution amount – which will include some of the debtors’ cash on hand, excess funds in the confirmation and professional fee reserves, and any amounts paid by Hikma Canada or Leiters, Inc. under their respective transition services agreements to repay amounts advanced for the expenses under a supplemental budget. Holders will also receive their pro rata portion of any litigation proceeds calculated based on the second-lien deficiency claim.

Holders of allowed general unsecured claims will receive their pro rata share of the general unsecured distribution, which is comprised of: the $3.03 million Ares settlement payment and litigation proceeds, less the amounts necessary to fund allowed professional fee claims of the committee’s professionals that are unpaid as of the effective date and for which the committee’s professionals seek payment; the wind-down expenses; and the pro rata portion of litigation proceeds payable on account of prepetition second-lien credit agreement claims.

Interests will be canceled with no distribution to holders.

Teligent is a Buena, N.J.-based specialty generic pharmaceutical company. The company filed bankruptcy on Oct. 14 under Chapter 11 case number 21-11332.

© 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.