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KaloBios Pharmaceuticals LOI Amendment Approved

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According to the U.S. Bankruptcy Court docket, the Court approved KaloBios Pharmaceuticals’ motion to approve an amendment to its motion for an order (i) approving a letter of intent (LOI) and term sheet with Cheval Holdings, Black Horse Capital and Black Horse Capital Master Fund; (ii) approving bidding procedures governing the submission and consideration of competing and supplemental plan sponsorship proposals; (iii) approving a breakup fee and (iv) scheduling and authorizing the Debtor to conduct an auction pursuant to such procedures.

As previously reported, “[W]e are pleased to submit the following amended letter and attached amended term sheet for debtor-in-possession financing in the principal amount of $3,000,000 and exit financing in the principal amount of $11,000,000 to KaloBios Pharmaceuticals.”

Court-filed documents continue, “In the event that definitive Loan Documents are not signed by the Debtor and the Lender on or before April 7, 2016 or the Bankruptcy Court fails to enter the DIP Order by April 29, 2016, then the Debtor’s obligations with respect to the ‘Breakup Fee’ shall terminate and be of no further force or effect, provided, however, that the Debtor’s obligation with respect to such Breakup Fee shall remain in effect and a Breakup Fee shall be payable as described in the Term Sheet if the failure to execute definitive Loan Documents on or before April 7, 2016 or the Bankruptcy Court’s failure to enter the DIP Order by April 29, 2016, results from the Debtor’s (a) breach of its obligations under the Term Sheet, (b) failure to negotiate in good faith the terms of the Loan Documents or DIP Order (c) negotiation or consummation of a sale of any of its IP rights or other assets, (d) negotiation or acceptance of an alternative DIP Financing and/or Exit Financing, (e) negotiation or consummation of a plan of reorganization that is not approved by Lender or (f) determination to effect a sale of all or substantially all its assets or of its common stock which is not approved by Lender….At the closing of the Exit Financing, a commitment fee of 7% ($770,000) (‘Exit Financing Commitment Fee’) shall accrue to the benefit of the Lender and shall be fully earned when due and is non-refundable in all cases.”

Read more KaloBios bankruptcy news.

The post KaloBios Pharmaceuticals LOI Amendment Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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