Graceway Pharmaceuticals seeks settlement with GTCR ahead of hearing

By Lisa Kerner

Charlotte, N.C., Feb. 14 - Graceway Pharmaceuticals, LLC and the debtors-in-possession have asked the court to approve a settlement agreement with member GTCR Golder Rauner, LLC and its affiliates, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the proposed settlement, GTCR will pay $4.5 million to the first-lien facility agent for the benefit of the first-lien claimholders and $1.5 million to the debtors' estates to be included as other assets under the plan of reorganization.

A hearing is set for March 16.

As previously reported, Graceway filed its plan in January.

The plan calls for liquidation of substantially all of the property of the company's estates.

Under the proposed plan, holders of first-lien facility claims will receive a share of any first-lien available cash, Nycomed litigation proceeds and beneficial interests in a liquidating trust, entitling them to further cash and avoidance action and cause of action proceeds.

Graceway wants to extend its exclusive plan-filing period to May 26 from Jan. 27 and the solicitation period to July 25, 2012 from March 27.

Hearings on the disclosure statement and exclusivity extension motion are scheduled for March 1.

Graceway, a Bristol, Tenn.-based pharmaceutical company, filed for bankruptcy on Sept. 29. Its Chapter 11 case number is 11-13036.

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