Molecular Insight gets court OK to assume $45 million investment deal

By Caroline Salls

Pittsburgh, Jan. 20 - Molecular Insight Pharmaceuticals, Inc. received court approval to assume an investment agreement with Savitr Capital LLC, according to a Jan. 20 filing with the U.S. Bankruptcy Court for the District of Massachusetts.

As previously reported, the company has obtained a commitment under which Savitr will purchase 90% of the company's equity capital for $45 million.

The investment is conditioned upon the replacement of the company's $195 million of existing bonds, including all accrued pay-in-kind interest, by $90 million principal amount of secured notes.

The company also received court approval to pay an $800,000 break-up fee to Savitr and reimburse up to $700,000 of its expenses if the agreement is terminated.

However, if the agreement is terminated in favor of an alternate proposal submitted by the company's bondholders, the break-up fee would be limited to $150,000.

According to the filing, Molecular Insight can now solicit competing proposals for 30 days.

Molecular Insight, a Cambridge, Mass.-based clinical-stage biopharmaceutical company focused on molecular medicine, filed for bankruptcy on Dec. 9. The Chapter 11 case number is 10-23355.

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