Melinta Therapeutics U.S. Trustee opposes amended reorganization plan

By Caroline Salls

Pittsburgh, March 27 – The U.S. Trustee overseeing Melinta Therapeutics, Inc.’s Chapter 11 case objected to confirmation of the company’s proposed amended plan of reorganization, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Regions 3 and 9 U.S. trustee Andrew R. Vara said in his objection that Melinta is seeking substantive consolidation of the debtors solely for distribution purposes, but “the record is bereft of information supporting such treatment,” as the statements on file show that most debtors held assets and incurred individual liabilities.

In addition, Vara said the company proposed a plan under which shareholders of the parent debtor are slated to receive no distribution, have no right to vote on the amended plan and are deemed to have rejected the plan.

However, the U.S. Trustee said Melinta is asking the court to deem all of those public shareholders to have consented to providing third-party releases to non-debtor parties unless they return a form opting out of the releases by the voting deadline.

“This treatment is contrary to relevant case law,” Vara said.

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

© 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.