Teligent disclosure statement revised in response to trustee objection

Chicago, April 27 – Teligent, Inc. revised its disclosure statement for a Chapter 11 plan after an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

One of the objections was that there was a lack of clarity regarding the definition of releasing parties.

The plan now lists each of the debtors’ current officers, directors or LLC managers, the DIP parties, the prepetition secured parties, Timothy Sawyer, the debtors’ former chief executive officer, Philip Yachmetz, the debtors’ former chief legal officer and the present and former members of the committee.

Additionally, the dates and deadlines for the confirmation were shifted.

The solicitation date is expected to be May 3.

The deadline to file claims objections for plan voting purposes is now April 29.

The plan supplement will be filed on or before May 13, the same day as the deadline to file bankruptcy Rule 3018 motions for plan voting purposes.

The voting deadline and confirmation objection deadline are still May 20.

The deadline for voting agent to file plan voting report is now May 23.

And, the deadline to reply to plan objections is still May 24.

Unchanged, and previously reported, 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. The projected recovery is 36%.

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. The projected recovery is 11%.

Interests will be canceled with no distribution to holders.

The company’s prepetition capital structure had approximately $16.44 million on a first-lien revolving credit facility, $89.82 million on a second-lien term loan facility, $296,943.06 in series D convertible notes, $3.35 million outstanding from a PPP loan and $23 million of trade or other general unsecured obligations.

Teligent is a Buena, N.J.-based specialty generic pharmaceutical company. The company filed bankruptcy on Oct. 14, 2021 under Chapter 11 case number 21-11332.

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