Aphton plan of liquidation confirmed

By Caroline Salls

Pittsburgh, March 29 - Aphton Corp.'s plan of liquidation was confirmed Thursday by the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, Aphton expects to have about $100,000 to $250,000 in cash to distribute to creditors. In addition, the plan administrator may liquidate the company's remaining assets, including litigation claims, avoidance actions, intellectual property, collection of deposits and return of escrowed funds and miscellaneous physical assets.

Holders of administrative, secured and unsecured priority claims will be paid in full.

Holders of general unsecured claims will receive their share of the plan administrator assets in one or more distributions, depending on the amount of reserves necessary for payment of disputed claims and estimates of plan administrator costs and expenses.

The disclosure statement said unsecured creditors could recover between zero and $0.62 on the dollar.

If all other claims are paid in full, which the company said is unlikely, holders of subordinated claims will receive the remaining plan administrator assets.

Equity interests will be canceled, and holders will receive no distribution.

Aphton, a Philadelphia-based biopharmaceutical company, filed for bankruptcy on May 23, 2006. Its Chapter 11 case number is 06-10510.

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