Athenex files Chapter 11 plan and disclosure statement

By Sarah Lizee

Olympia, Wash., July 27 – Athenex, Inc. filed a Chapter 11 plan and disclosure statement on Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The debtors have sold substantially all of their operating assets, and under the plan, the debtors will wind down their business, sell, liquidate or otherwise dispose of their remaining assets, address pending claims, including litigation claims, and make distributions to creditors.

The company’s prepetition lenders will receive all value available for distribution until their claims are paid in full, including all fees, interest and other amounts due under the prepetition credit agreement through the effective date, following payment of all allowed administrative claims, priority tax claims and priority non-tax claims, other than distributions on account of all allowed other secured claims and distributions to be made to holders of allowed unsecured claims via a settlement reached among the debtors, the prepetition lenders and the official committee of unsecured creditors.

The settlement provides for general unsecured creditors to share pro rata from certain assets to be transferred to the liquidating trust, comprised of a general unsecured creditor fund, trust-retained actions, the China manufacturing business receivable, 50% of the cell therapy division net sale proceeds, 100% of the Orascovery milestone payment to the extent triggered, and cash available for distribution to the liquidating trust in line with the excess proceeds waterfall.

The committee settlement also provides that the prepetition lenders will waive their deficiency claim, if any, against the estates, and ensure appropriate budgeting to make sure that all administrative and priority claims are accounted for so that the assets of the liquidating trust will be solely for the benefit of holders of allowed unsecured claims.

The estimated recovery for holders of unsecured creditors claims is 5%.

There will be no distributions to holders of interests.

Athenex is a clinical-stage biopharmaceutical company with headquarters in Buffalo, N.Y. The company filed bankruptcy on May 14 under Chapter 11 case number 23-90295.

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