Radiopharmaceutical developer Molecular Insight Pharmaceuticals has filed for Chapter 11 reorganization and also secured a $45 million financing commitment from private investment firm Savitr Capital.
The investment is conditioned upon the Cambridge, MA-based firm's replacement of approximately $195 million of existing bonds by $90 million in secured notes. The holders of Molecular Insight's existing bonds would receive 10% of the firm's common stock.
The investment is also subject to a number of other conditions, including Molecular Insight's emergence from its corporate restructuring by March 31, adherence to a cash collateral budget, satisfactory resolution of various issues related to its Onalta drug candidate, and certain bankruptcy-related preconditions, Molecular Insight said.
As part of the reorganization, Daniel Peters, president and CEO, and Charles Abdalian, senior vice president and chief financial officer, have tendered their resignations. Longtime board member Harry Stylli, PhD, was named as chief restructuring officer and president, while Mark Attarian, a partner at executive financial services firm Tatum, was appointed interim executive vice president and chief financial officer.
John Babich, PhD, was named as principal executive officer, while Attarian will be principal financial officer for matters such as filings with the U.S. Securities and Exchange Commission, Molecular Insight said.
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