ANNAPOLIS, Md., April 13, 2016 /PRNewswire/ -- PharmAthene, Inc. (NYSE MKT: PIP) reported today that the U.S. Bankruptcy Court for the Southern District of New York approved a reorganization plan that lays out the terms and conditions under which SIGA Technologies, Inc. will exit from bankruptcy, effective April 12, 2016. The plan was negotiated between SIGA and the Statutory Creditor's Committee of which PharmAthene is a member. PharmAthene has received a $5 million initial payment from SIGA. The payment is creditable against final satisfaction of PharmAthene's claim of approximately $205 million plus interest and is not refundable.
Under the plan, PharmAthene's judgment will be satisfied no later than October 20, 2016 by SIGA in one of the following ways, to be chosen by SIGA:
- Payment in full in cash of the unpaid balance plus interest that will accrue at 8.75% after Plan approval; or
- Delivery to PharmAthene of 100% of SIGA's common stock; or
- Such other treatment as may be mutually agreed upon by SIGA and PharmAthene and approved by the Court
In the event that SIGA pays PharmAthene cash in full and barring any unexpected material events, PharmAthene currently expects that it will distribute at least 90% of the after tax net cash proceeds to its shareholders. The timing and form of distribution will depend upon PharmAthene's analysis of its current situation, applicable corporate statutes related to distributions and the economic consequences to its shareholders of any such distribution. In addition to the distribution of these cash proceeds, PharmAthene intends to seek M&A or other partnering transactions to maximize the value of its remaining assets and anthrax vaccine programs. PharmAthene will work to develop a transition plan for managing and operating SIGA as a separate business in the event SIGA decides to satisfy the judgment by delivering 100% of SIGA's stock to PharmAthene.
PharmAthene is a biodefense company engaged in the development of next generation medical countermeasures against biological and chemical threats. The Company's development portfolio includes two next generation Anthrax vaccines that are intended to improve protection while having favorable dosage and storage requirements compared other Anthrax vaccines.
Forward-Looking Statement Disclaimer
Except for the historical information presented herein, matters discussed may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements preceded by, followed by, or that include the words "potential"; "believe"; "anticipate"; "intend"; "plan"; "expect"; "estimate"; "could"; "may"; "should"; "will"; "project"; "potential"; or similar statements are forward-looking statements. Risks and uncertainties include risks associated with our ability to collect a money judgment from SIGA judgment; risks relating to the timing of payments, if any, under the SIGA litigation; our ability to make distributions of a substantial portion of the cash proceeds receive from SIGA; the timing, amount and form of such a distribution; risks relating to our continuing ability to recognize cost reductions; funding delays and/or reductions or elimination of U.S. government funding and/or non-renewal of expiring funding; risks associated with our net operating loss carryforwards, or NOLs; risks associated with accomplishing any future strategic partnerships or business combinations; and other risks detailed from time to time in PharmAthene's Forms 10-K and 10-Q under the caption "Risk Factors" and in its other reports filed with the U.S. Securities and Exchange Commission. PharmAthene disclaims any intent or obligation to update these forward-looking statements other than as required by law.
Copies of PharmAthene's public disclosure filings are available on our website under the investor relations tab at www.PharmAthene.com.
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SOURCE PharmAthene, Inc.