Hemosol court to hear license agreement breach, termination issues July 13

By Caroline Salls

Pittsburgh, June 16 - Hemosol Corp. interim receiver PricewaterhouseCoopers Inc. said a hearing has been scheduled for July 13 to determine issues related to alleged breach and possible termination of a license agreement between Hemosol affiliate Hemosol LP and ProMetic Bioscience Ltd., according to a company news release.

According to the release, PricewaterhouseCoopers will be asking the Ontario Superior Court of Justice to determine whether Prometic has breached the license agreement and is in contempt of the court-ordered stay of proceedings against Hemosol.

Further, ProMetic will ask the court to lift the stay to allow it to terminate the license agreement.

ProMetic is also expected to ask the court whether there is any basis for it to terminate the agreement.

According to the release, the receiver and Hemosol's plan sponsor do not believe that ProMetic has the right to terminate the agreement.

The plan sponsor is funding the Companies' Creditors Arrangement Act proceedings of Hemosol, and its sponsorship agreement is subject to the sponsor entering into arrangements with ProMetic for the exclusive use of all ProMetic intellectual property, processes and know-how licensed to Hemosol LP.

The sponsorship agreement also is subject to approval of Hemosol's creditors and the court on a proposed CCAA plan of compromise, and possibly a plan of arrangement under the Business Corporations Act (Ontario).

Hemosol, a Toronto biopharmaceutical company, filed for bankruptcy on Dec. 2, 2005 in the Ontario Superior Court of Justice.

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