KaloBios Bankruptcy Plan, Shkreli Settlement Win Court Approval
ByKaloBios Pharmaceuticals Inc. won bankruptcy court approval of a reorganization plan that shrinks former Chief Executive Officer Martin Shkreli’s stake to about 14 percent.
U.S. Bankruptcy Judge Laurie Silverstein agreed to the plan at a hearing Wednesday in Wilmington, Delaware. The proposal was accepted by all classes entitled to vote and “all parties are receiving more than they would receive in a liquidation,” she said.
The drugmaker filed for bankruptcy in December, shortly after he was arrested on fraud charges related to other businesses he was involved in. He denies the allegations. As a result of additional shares being issued, Shkreli’s stake in KaloBios would shrink to about 14 percent from about 47 percent…
KaloBios Bankruptcy Plan, Shkreli Settlement Win Court Approval
