Novum Pharma’s plan of reorganization confirmed by bankruptcy court

By Caroline Salls

Pittsburgh, Aug. 29 – Novum Pharma, LLC’s plan of reorganization was confirmed Thursday by the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, Novum’s debtor-in-possession financing will be converted to exit financing.

Administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash.

Holders of miscellaneous secured claims will either receive cash equal to the amount of the claim or the return of the collateral securing the claim.

Holders of pre-bankruptcy secured lender claims will receive no distribution on account of their loan, but the loan and liens will remain in effect after the plan effective date. The maturity date of the pre-bankruptcy loan will be extended through the date on which the exit facility is repaid, and payments until the repayment date will be limited to interest.

Holders of general unsecured claims will receive a share of litigation trust interests.

Holders of subordinated claims will receive no distribution.

Member interests will be exchanged for a member contribution.

Other interests will be cancelled, and holders will receive no distribution.

Novum is a Chicago-based specialty pharmaceutical company. It filed bankruptcy on Feb. 3 under Chapter 11 case number 19-10209.

© 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.