Clovis Oncology disclosure statement draws committee objection

By Sarah Lizee

Olympia, Wash., March 30 – Clovis Oncology, Inc.’s motion for interim approval of the disclosure statement for its Chapter 11 plan of liquidation drew a limited objection from the official committee of unsecured creditors, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The committee said it objects for two reasons.

First, the committee believes the confirmation timeline should be delayed, because the plan is premised on the validity of Sixth Street’s stipulated debt claims and can’t go effective while the committee’s soon-to-be-filed challenge is pending.

“Since its formation, the committee has been investigating Sixth Street’s prepetition investment in the debtors,” the committee said in its objection.

“Through the course of that investigation, the committee believes it has identified a legitimate basis to recharacterize Sixth Street’s $347 million stipulated claim as equity and, alternatively, to disallow up to $175 million of that claim as unmatured interest or an unenforceable penalty.”

Second, the committee said the plan is “patently unconfirmable” because it imposes a cap on the payment of allowed administrative claims of the committee’s professionals.

“Notably, the plan does not impose any such cap on the payment of allowed administrative claims held by the debtors’ professionals or otherwise seek to limit payment of any other allowed administrative priority claims,” the committee said.

The motion has also drawn an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, as previously reported.

A hearing on interim approval of the disclosure statement is scheduled for April 4. The company is hoping for a May 9 combined hearing on final approval of the disclosure statement and confirmation of the plan.

Clovis Oncology is a Boulder, Colo.-based biopharmaceutical company. The company filed bankruptcy on Dec. 11 under Chapter 11 case number 22-11292.

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