Bondholders have scuttled Molecular Insight Pharmaceuticals's plan to secure in financing from private equity outfit Savitr Capital, forcing the developer to file for Chapter 11 bankruptcy. Savitr Capital offered $45 million in return for 90 percent of Molecular Insight's outstanding share. But as Bloomberg explains, bondholders balked because the deal was dependent up on the replacement of $195 million in bonds with $90 million in secured notes. Molecular Insight has no other financing opportunities on the horizon. "We are disappointed that the bondholders have not accepted the Savitr proposal and that, as a result, we are required to commence chapter 11 proceedings to protect our Company's ongoing business," Joseph Limber, MIPI Chairman of the Board
As part of the reorganization, CEO Daniel Peters and CRO Charles Abdalian have resigned. Mark Attarian, a partner with an executive financial services firm, will step in as interim CFO, while board member Harry Stylli (photo) will serve as chief restructuring officer. Last year Stylli was fired as CEO of Sequenom after independent board members launched an investigation into the mishandling of a clinical trial for a prenatal Downs Syndrome test the company was developing.
The Massachussets-based developer, which is exploring therapeutic and imaging radiopharmaceuticals for use in oncology, laid off nine employees at the beginning of the year and out-licensed one program in an effort to cut costs. Molecular Insight has not revealed any detail regarding the future of its clinical programs or additional layoffs
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