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Melinta Therapeutics reorganization plan confirmed by court
By Caroline Salls
Pittsburgh, April 13 – Melinta Therapeutics, Inc.’s plan of reorganization was confirmed on Saturday by the U.S. Bankruptcy Court for the District of Delaware.
Last month, the company received court approval to assume a restructuring support agreement reached with lenders Deerfield Private Design Fund III, LP and Deerfield Private Design Fund IV, LP.
Under the restructuring agreement, the supporting lenders will acquire the company as a going concern by exchanging $140 million of secured claims arising under its senior credit facility for 100% of the equity to be issued by reorganized Melinta under a pre-negotiated Chapter 11 plan of reorganization.
In accordance with the agreement, the supporting lenders will consent to the company’s continued use of its existing cash and cash equivalents, which will provide Melinta the liquidity necessary to operate its business.
According to the disclosure statement, the plan calls for payment in full of administrative, priority tax, other priority and other secured claims. The treatment of remaining claims and interest will depend on the outcome of Melinta’s sales and marketing process.
If the supporting lenders are the winning bidder for the company’s assets, they will receive 100% of the equity interests in reorganized Melinta in full satisfaction of their secured pre-bankruptcy credit agreement claims.
If the lenders are the winning bidder, holders of general unsecured claims will receive no distribution, and all interests in Melinta Therapeutics will be cancelled, extinguished and discharged.
The interests in Melinta will be cancelled, extinguished and discharged.
Melinta is an antibiotics company based in New Haven, Conn. The company filed bankruptcy on Dec. 27 under Chapter 11 case number 19-12748.
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