SIGA Technologies to distribute cash, possibly new stock under plan

By Caroline Salls

Pittsburgh, Dec. 15 – SIGA Technologies Inc. filed its plan of reorganization Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

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

Holders of secured claims will either be paid in full in cash, receive the proceeds from the sale of the collateral securing the claims or receive the collateral.

Holders of general unsecured claims will receive up to $5 million in cash, plus post-bankruptcy interest. As the only holder of a general unsecured claim in excess of $5 million, PharmAthene will receive either a lump sum payment, an alternative award, new common stock or other agreed treatment in exchange for the excess amount of its claim.

Equity interests will be reinstated, unless PharmAthene receives new common stock, in which case existing equity interests will be canceled, and holders will receive no distribution.

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, 2014 under Chapter 11 case number 14-12623.

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