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PLx Pharma Inc. – As Anticipated Sparta, NJ-Based “Commercial-Stage Drug Delivery Platform Technology Company” Files for Bankruptcy in Delaware; Will Pursue Sale to Greenwood Brands, LLC

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[Just filed. Developing story.] April 13, 2023 – As flagged by an April 12th press release, PLx Pharma Inc. and one affiliated debtors (NASDAQ: PLXP; together “PLx” or the “Debtors”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case No. 23-10456 (Judge Mary F. Walrath). The Debtors, "a commercial-stage drug delivery platform technology company," are represented by Robert F. Poppiti, Jr. of Young Conaway Stargatt & Taylor, LLP. Further Board authorized appointments include: (i) Olshan Frome Wolosky LLP as general bankruptcy counsel, (ii) SierraConstellation Partners providing Lawrence Perkins as CRO, (iii) Raymond James as financial advisors and investment bankers and (iv) Donlin Recano as claims agent.

The Debtors’ lead petition notes over 100,000 creditors; estimated assets between $10.0mn and $50.0mn ($21.75mn as at December 31, 2022); and estimated liabilities between $10.0mn and $50.0mn ($12.3mn as at December 31, 2022). Documents filed with the Court list the Debtors’ three largest unsecured creditors as (i) Patheon Pharmaceuticals, Inc ($8.6mn trade debt claim), (ii) Patheon Manufacturing Services LLC ($1.8mn trade debt claim) and (iii) Altasciences CDMO Philadelphia LLC ($89k treade debt claim).

In their April 12th press release, the Debtors provided as to their then imminent bankruptcy filing: "The Company today announced that it entered into a stalking horse asset purchase agreement (the 'APA') with PLx Acquisition Company, LLC, a wholly-owned subsidiary of Greenwood Brands, LLC ('Buyer'), to acquire substantially all of the Company’s assets (the “Sale”)….Pursuant to the terms and subject to the conditions of the APA, the purchase price is $100,000 in cash, plus a credit bid of $3 million, plus Buyer’s assumption of certain liabilities….The Company intends to file voluntary petitions for relief under Chapter 11 of Title 11 of the U.S. Code in the U.S. Bankruptcy Court for the District of Delaware…within the next two business days."

The Greenwood Brands asset purchase agreement was filed with an April 12th 8-K. The Buyer lists a contact address of: c/o Greenwood Brands LLC, 4455 Genesee Street, Buffalo, New York 14225 and George Cleary of Princeton, NJ-based  Market Performance Group is listed as the Buyer's contact.

Prepetition Shareholders

The Debtors list Level One Partners, LLC; Park West Asset Management LLC; and White Rock Capital Management L.P. as each holding at least 5% of their equity.

About the Debtors

According to the Debtors: “PLx Pharma Inc. is a commercial-stage drug delivery platform technology company focused on improving how and where active pharmaceutical ingredients (APIs) are absorbed in the gastrointestinal (GI) tract via its clinically validated and patent protected PLxGuard™ technology. PLx believes this platform has the potential to improve the absorption of many drugs currently on the market or in development, and to reduce the risk of stomach injury associated with certain drugs. “

 

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The post PLx Pharma Inc. – As Anticipated Sparta, NJ-Based “Commercial-Stage Drug Delivery Platform Technology Company” Files for Bankruptcy in Delaware; Will Pursue Sale to Greenwood Brands, LLC appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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