Tuesday, April 26, 2016

Several New (Improved) Features In KaloBios' Chapter 11 Exit Plan -- DiP Financing Auction Tomorrow In NYC

[This is cross posted (with minor edits) from the KaloBios bankruptcy site.] Overnight, KaloBios filed a major amendment to the Plan and the related Disclosure Statement (that's a link to the red-lined amended statement, a  1 MB PDF -- hefty; not for tight, small bandwidth connections).

I'll have much more, on other aspects of the re-negotiated exit plan in future posts (over there), but the PIPE group has struck an enhanced preliminary deal, in negotiations with KaloBios and the DiP lender group, likely in order to secure a favorable vote (as to the Chapter 11 exit plan, from the so-called Class 4 claimants -- a/k/a the PIPE-ers), thus:

. . . .If Class 4 Accepts the Plan, then the PIPE Claim of each Holder of a PIPE Claim that has Accepted the Plan will be Allowed and, on account of and in full and final satisfaction of such Allowed PIPE Claim, such Holder will: (i) retain the Existing Common Stock purchased by such Holder in the PIPE Transaction; (ii) receive (a) its pro rata share of [277,608] shares of Remaining New Common Stock [and (b) reimbursement of reasonable, documented attorneys’ fees incurred in connection with the PIPE Litigation up to $250,000 in the aggregate among all Holders of PIPE Claims that have accepted the Plan]. The number of shares of Remaining New Common Stock allocated to each Holder of an Allowed PIPE Claim shall be in a 1:1 ratio of the number of shares purchased by the Holder of such Allowed PIPE Claim in the PIPE Transaction. . . .

So, the PIPE group, should they support the plan, will get to keep all the original December 2015 shares bought, plus split up to an additional 277,608 shares (that used to be around 163,000 shares -- or, a 70 per cent increase over last offer), upon exit. And tomorrow at Noon EDT is the auction, for DiP Secondary Plan financiers, at Hogan Lovells' offices in New York City.

Do go see the latest filings at Prime Clerk. More later today -- much more (at the KaloBios Chapter 11 site). Onward, into a gray Tuesday -- with only the Predators still in the Stanley Cup hunt. . . but smiling, just the same. . . .

No comments: