Judge ‘Taken Aback’ By Vivus Equity Tradeoff In Ch. 11
Law360 (July 10, 2020, 7:41 PM EDT) — A Delaware bankruptcy judge said Friday that she was “taken aback” by conditions set by biopharmaceutical company Vivus Inc. for payments to otherwise wiped out stockholders in a prepackaged $235 million Chapter 11 restructuring, but she took no action on the provision at an initial case hearing.
The plan provision, also questioned by the Office of the U.S. Trustee, offers an “existing stock settlement” and contingent value rights to stockholders worth up to $2.28 per share provided they forgo any objection, effort to form an equity committee, actions against officers or directors or other challenges to the plan.
U.S. Bankruptcy Judge…