Melinta Therapeutics Announces Court Approval of Chapter 11 Bidding Procedures
Bids due on
Company Previously Announced Agreement of its Secured Lenders to
Company Continues Operations with No Anticipated Disruption to Product Supply or Support
Under the Bidding Procedures Order, all bids to acquire the Company’s assets or reorganized common stock are due to
Melinta previously announced that it had initiated voluntary proceedings in the Court to address its debt and other obligations, as well as to facilitate the Company’s Restructuring Support Agreement (the “Agreement”) with
Since filing for Chapter 11, the Company has continued to operate its business in the normal course with no disruption to product supply, distribution, promotion, or support of the Company’s antibiotic portfolio. The process outlined in the Bidding Procedures Order poises the Company to emerge as a going concern under new ownership and on a financially sound footing as soon as late first quarter or early second quarter, 2020, thereby ensuring the continued availability of the Company’s products to patients.
Melinta’s legal advisors are
Additional information about this process, including a copy of the Bidding Procedures Order and other documents related to the restructuring and reorganization proceedings, is available through Melinta’s claims agent
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this communication constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions, including statements related to guidance. The Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect the Company’s current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to it and on assumptions it has made and include statements regarding: the timing, receipt and terms of bids, if any, for the Company in connection with the Company’s sale process and the Bidding Procedures Order; the Company’s ability comply with the Bidding Procedures Order; the terms of and the ability to consummate the transactions contemplated by the pre-negotiated chapter 11 plan of reorganization, including the Agreement; any anticipated recovery of creditors; the expected treatment of the equity of the Company, including no expected recovery of existing equity; the timing and ability of the Company to emerge from the chapter 11 proceedings as a going concern; expectations with respect to the Company’s liquidity, financial performance, cash position and operations including the adequacy of the capital resources of the Company’s businesses; the continued availability of the Company’s products and the Company’s ability to continue to serve its customers; and the Company’s strategy, including the Company’s ability to execute on its strategic plan to pursue, evaluate and close an acquisition pursuant to a plan of reorganization or asset sale; the Company’s long-term outlook and any statements or assumptions underlying any of the foregoing. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that the plans, intentions, expectations, strategies or prospects will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the Company’s control.
Risks and uncertainties for the Company include, but are not limited to, the decisions of the Court; negotiations with the Company’s debtholders, the Company’s creditors and the official committee of unsecured creditors and any other committee appointed in the Chapter 11 cases; risks and uncertainties associated with Chapter 11 proceedings; the negative impacts on the Company’s businesses as a result of filing for and operating under Chapter 11 protection; the Company’s ability to meet the requirements, and compliance with the terms, including restrictive covenants, of the Restructuring Support Agreement and any settlement or other arrangement while in Chapter 11 proceedings and risks associated with such compliance; negotiations with Deerfield and/or third-party bidders on a potential acquisition pursuant to a plan of reorganization or asset sale; the unpredictability of the Company’s financial results while in Chapter 11 proceedings; the Company’s ability to discharge claims in Chapter 11 proceedings; changes in the Company’s cash needs as compared to its historical operations or its planned reductions in operating expense; adverse litigation; changes in domestic and international demand for the Company’s products; the Company’s ability to control operating costs and other expenses, including during Chapter 11 proceedings; the risk that the Company’s Chapter 11 Cases may be converted to cases under Chapter 7 of the Bankruptcy Code; the Company’s ability to secure operating capital; the Company’s ability to take advantage of opportunities to acquire assets with upside potential; the Company’s ability to conduct business as usual in
Other risks and uncertainties are more fully described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, its Definitive Proxy Statement filed
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Source: Melinta Therapeutics