SIGA committee asks to hire Guggenheim Securities as financial adviser

By Kali Hays

New York, Dec. 9 – SIGA Technologies Inc.’s official committee of unsecured creditors is seeking permission to hire Guggenheim Securities, LLC as its financial adviser and investment banker, according to a Monday motion with the U.S. Bankruptcy Court for the Southern District of New York.

If approved, the committee asked that the hiring be retroactive to Dec. 1.

Guggenheim will evaluate SIGA’s current financial condition and prospects and also assist the committee in the negotiation and evaluation of any plan proposed by the company.

The committee selected Guggenheim based on its extensive experience working with restructuring companies within the pharmaceutical industry, as well as its experience coming before New York courts, according to the motion.

For its services, Guggenheim will be paid a monthly fee of $150,000 for the first three months of its employment and $100,000 per month thereafter. If SIGA files a plan that the committee supports, the firm will also receive a one-time transaction fee of $2 million and if the committee objects to any proposed plan, the fee will be $1.5 million.

In addition, the committee will pay Guggenheim a one-time fee of $500,000 if it requires the firm to compile an expert report or expert testimony in court proceedings.

A hearing to consider the hiring is set for Jan. 13.

Based in New York, SIGA Technologies develops and commercializes solutions for serious unmet medical needs and biothreats. The company filed for bankruptcy on Sept. 16 under Chapter 11 case number 14-12623.

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