KaloBios Pharmaceuticals filed with the U.S. Bankruptcy Court a motion to approve one-time equity award to the current members, the directors of the Debtor’s board of directors and the Debtor’s chief executive officer.
The motion explains, “On the Petition Date, only two members of the former board of directors remained – one director being David Moradi – and the Debtor had no executive management other than a recently named part-time restructuring officer….Scarcely a week into the chapter 11 case, the Debtor was hit with a lawsuit seeking to sequester and return nearly all of its cash to certain investors….At the same time, the Debtor had just completed its search for additional, independent directors, and Dr. Cameron Durrant and Mr. Ronald Barliant were appointed to the Board on the same day that the PIPE Litigation was initiated.”
The motion continues, “This exceptional and challenging chapter 11 case has placed extraordinary and unprecedented demands on Debtor’s Directors….The active, hands-on, and day-to-day involvement of the Board went far and above the duties, responsibilities and work of a typical corporate Board. Among other examples, the Directors played key and invaluable roles in keeping the Savant Transaction alive through the early days of this case, maintaining key employee relationships, securing financing, reaching a settlement with the PIPE Plaintiffs and engaging the Class Action plaintiff in active settlement discussions. Accordingly, the Debtor seeks entry of an order approving the payment of the Equity Award to Dr. Durrant, Mr. Barliant and Mr. Moradi.”
The one-time equity award to the directors and C.E.O. are as follows: one-time special equity grant target value for Ronald Barliant – $300,000; David Moradi – $300,000 and Dr. Cameron Durrant – $100,000 (apart from the annual compensation of $64,000; $50,000 and $101,000, respectively. The Court scheduled a June 14, 2016 hearing to consider the motion, with objections due by June 7, 2016.
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