To be fair, almost nothing about the Vyera Chapter 11 has. . . gone according to Hoyle. But that is because it is inexorably tied to the prior bad acts of one Martin Shkreli. So. . . it is, as they say. . . complicated.
The full narrative / chronology is the subject of a separate blog (just search "Vyera", there), but suffice it to say that there are some doubtful claims against RL Fine, arguably in favor of Vyera the company, but not Mr. Shkreli, himself. So, we see papers to grant the Vyera lawyers a super priority -- and advanced payout, if any proceeds of sales occur prior to exiting Chapter 11, on the contingent fee agreement the two parties have signed. Very unusual, thus:
. . .We are pleased that debtor Phoenixus AG (“you,” “Phoenixus” “Client” or “You”) has engaged DLA Piper LLP (US) (“DLA Piper US”) (collectively, “we,” or the “Firm” or “DLA Piper”) to represent it in connection with prosecution of claims against RL Fine Pty Ltd (the “Contingent Fee Matter”). The engagement includes the services described in the attached offer of services. This Supplemental Engagement Letter is subject to Bankruptcy Court approval in the Subchapter V Case entitled, Vyera Pharmaceuticals, LLC, et al. Case No. 23-10605. . . .
In payment for its services incurred with respect to the Matter, DLA Piper shall be entitled to a contingency fee (“Contingency Fee”) the greater of (a) THIRTY THREE 1/3 PERCENT (33.3%) of recoveries (including, without limitation, by settlement or collections on a judgment) received by the Debtors’ estates with respect to the Matter (the “Matter Recoveries”) if no appeal is taken or (b) FORTY PERCENT (40%) of Matter Recoveries if an appeal is taken. To secure payment of the Contingency Fee, the Supplemental Retention Order shall grant DLA Piper a superpriority lien under 364 of the Bankruptcy Code with respect to the Matter Recoveries which lien shall be satisfied by full payment of the Contingency Fee from the Matter Recoveries without further order of Court. . . .
To the extent Recoveries are obtained prior to emergence from Chapter 11 or during any other case under any chapter of the Bankruptcy Code, DLA Piper shall be entitled to hold an amount equal to the Contingent Fee in escrow from any Recoveries which amount shall be paid to DLA Piper upon approval of the Court. If Recoveries are obtained after emergence from Chapter 11, DLA Piper shall be entitled to be paid the Contingent Fee out of any Recoveries without any further order of Court before any Recoveries are distributed to any successor or assignee of the Debtors including, without limitation, any liquidation trust established under any plan of reorganization or plan of liquidation. . . .
Now you know. And, man oh man, did Martin's lawless monopolistic efforts ever make. . . a complicated mess out of Turing, that became Vyera. And it has all (just like with KaloBios, now Humanigen). . . led to the bankruptcy of the subject entities. Yikes.
Enjoy your long weekends, one and all!
नमस्ते
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