Melinta Therapeutics files plan; treatment depends on winning bidder

By Caroline Salls

Pittsburgh, Jan. 22 – Melinta Therapeutics, Inc. filed a plan of reorganization and related disclosure statement on Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

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.

Meanwhile, if a third-party bidder is the winning bidder, holders of secured credit agreement claims will receive a share of distributable cash until their claims are paid in full in cash.

Holders of general unsecured claims will receive a share of any distributable cash remaining after all credit agreement claims have been paid in full in cash.

The interests in Melinta would still be cancelled, extinguished and discharged in either scenario.

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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