Immune Pharmaceuticals Inc – Files Chapter 11 as Key Creditor Threatens to Sell Collateral at Virgin Islands Auction

February 17, 2019 – Immune Pharmaceuticals Inc (“Immune” or the “Company”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of New Jersey, case number 19-13273. The Company, a biopharmaceutical company developing therapeutic agents for the treatment of immunologic and inflammatory diseases, is represented by Morris S. Bauer of Norris McLaughlin PA. Further board-authorized engagements include (i) Lowenstein Sandler as special corporate counsel and (ii) Armory Group LLC and Vine Holding Group as investment bankers and financial advisors.

The Company’s petition notes between 100 and 200 creditors, estimated assets of $20.7mn and estimated liabilities of $19.9mn. Documents filed with the Court list the Company’s three largest unsecured creditors as Meda Pharm SARL ($3.0mn unliquidated debt), (ii) Heights Capital Management ($625k) and (iii) Alpha Capital ($581k).

In an 8-K filed with the SEC on February 14, 2019, the Company detailed a series of events which have led a key creditor to threaten to sell collateral securing debentures issued by the Company in October 2018. Specifically, the investor, Discover Growth Fund, LLC, has served notice declaring $12.1mn immediately due and payable and announcing its intention to sell collateral at an auction scheduled to take place on Monday, February 18, 2109 in St. Thomas, The Virgin Islands.

 

 

Immune Pharmaceuticals Inc. is a biopharmaceutical company developing novel therapeutic agents for the treatment of immunologic and inflammatory diseases. Immune’s lead program, bertilimumab, is a first-in-class, fully human monoclonal antibody that targets and lowers levels of eotaxin-1, a chemokine that plays a role in immune responses and attracts eosinophils to the site of inflammation. By neutralizing eotaxin-1, bertilimumab may prevent the migration of eosinophils and other cells, thus helping to relieve associated inflammatory conditions. Currently, Immune is conducting two phase 2 clinical trials to test bertilimumab in patients suffering from bullous pemphigoid and ulcerative colitis, respectively. Bertilimumab may have application in other diseases, including atopic dermatitis, asthma and other eosinophil-mediated diseases.