Former Teligent’s Chapter 11 plan hearing rescheduled for June 17

By Sarah Lizee

Olympia, Wash., June 7 – VJGJ, Inc., formerly Teligent, Inc., had the hearing on confirmation of its Chapter 11 plan moved to June 17, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The company’s first amended joint Chapter 11 plan lays out that the plan will be implemented by the approval of settlements with lender Ares Capital Corp. and asset purchaser Hikma Canada Ltd. A plan administrator and plan oversight committee will be appointed under the plan, which provides for the dissolution and wind-up of the affairs of the debtors.

All allowed administrative claims, allowed professional fee claims, allowed priority tax claims and DIP claims were not entitled to vote on the plan.

Administrative claims and priority tax claims are being paid out of the confirmation reserves. Professional fees are being paid from the supplemental budget.

DIP claims are being paid from the proceeds of the sales, specifically the Hikma sale, the PAI sale and the Leiters sale.

Holders of other secured class 1 claims, class 2 priority non-tax claims and class 3 prepetition first-lien credit agreement claims will have their claims unimpaired and were also not entitled to vote on the plan.

Class 1 and class 2 claims will be paid in cash from the confirmation reserves.

Class 3 claims for the prepetition agreements already had their loans converted into DIP facilities.

Prepetition second-lien credit agreement claims as class 4 and general unsecured claims as class 5 will have their claims impaired.

Class 4 second-lien claims will receive their pro rata portion of any litigation proceeds. The estimated allowed amount of claims in the disclosure statement was about $90.24 million with a 36% projected recovery.

Class 5 claims will receive a pro rata share of the GUC distribution. The estimated allowed amount of claims was roughly $14.08 million with a projected 11% recovery under the plan.

Also impaired are class 6 intercompany claims and interest on the claims. The claims will be considered canceled, but those classes are deemed to have rejected the plan and were not entitled to vote.

Teligent is a Buena, N.J.-based specialty generic pharmaceutical company. The company filed bankruptcy on Oct. 14, 2021 under Chapter 11 case number 21-11332.

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