Molecular Insight Pharmaceuticals (MIP) has announced that at a hearing held on May 5, the U.S. Bankruptcy Court for the District of Massachusetts confirmed the company's Amended Plan of Reorganization, and MIP is scheduled to emerge from Chapter 11 as a fully restructured company by late May.
The plan restructures the company's consolidated balance sheet by reducing outstanding debt by approximately $162 million and facilitating a new capital infusion of approximately $40 million. Under the plan, all outstanding shares of MIP's common stock will be extinguished on the plan's effective date.
In addition, the bankruptcy court approved an order that would restrict, under certain circumstances, the trading of the company's common stock by entities that hold more than 4.5 percent of the company's common stock to preserve the full amount of the company's net operating losses. The Cambridge, Mass.-based MIP expects the plan to become effective on or about May 20, once all closing conditions have been met.
On Dec. 9, 2010, Molecular Insight filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the District of Massachusetts.