Melinta Therapeutics OK’d to assume restructuring support agreement

By Caroline Salls

Pittsburgh, March 18 – Melinta Therapeutics, Inc. received court approval to assume a restructuring support agreement reached with lenders Deerfield Private Design Fund III, LP and Deerfield Private Design Fund IV, LP, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Under the restructuring agreement, the supporting lenders will acquire the company as a going concern by exchanging $140 million of secured claims arising under its senior credit facility for 100% of the equity to be issued by reorganized Melinta under a pre-negotiated Chapter 11 plan of reorganization.

In accordance with the agreement, the supporting lenders will consent to the company’s continued use of its existing cash and cash equivalents, which will provide Melinta the liquidity necessary to operate its business.

Melinta said its agreement with the supporting lenders positions it to emerge from Chapter 11 on an expedited basis under new ownership and continue operating as a going concern on sound financial footing.

Melinta is an antibiotics company based in New Haven, Conn. The company filed bankruptcy on Dec. 27 under Chapter 11 case number 19-12748.

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