Vivus pre-packaged plan confirmation hearing scheduled for Aug. 19

By Caroline Salls

Pittsburgh, July 13 – Vivus, Inc. obtained conditional approval of the disclosure statement for its pre-packaged plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

A combined plan confirmation and final disclosure statement approval hearing is scheduled for Aug. 19.

Under the plan, IEH Biopharma LLC will take 100% ownership of the company.

Vivus’ stockholders of record as of July 2 will receive a portion of $5 million in cash and a non-transferable contractual contingent value right to earn another $2 per share if the company meets financial milestones in both 2021 and 2022.

Supporting holders of unsecured convertible notes claims will receive 100% of the equity in reorganized Vivus.

Supporting holders of secured notes claims will be paid in full in cash from the proceeds of an exit facility or have their notes exchanged dollar-for-dollar for new exit facility debt. These creditors will also receive a share of an unpaid prepayment premium, which will total at least $3.17 million.

General unsecured creditors are expected to recover 6% of their claims.

Campbell, Calif.-based Vivus is a pharmaceutical company that filed bankruptcy on July 7. The Chapter 11 case number is 20-11779.

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