Molecular Insight Pharmaceuticals, Inc. (OTCQB: MIPIQ) (Pinksheets:MIPIQ - News), today announced that at a hearing held on May 5, 2011, the U.S. Bankruptcy Court for the District of Massachusetts confirmed the Company's Amended Plan of Reorganization (the "Plan"). Molecular Insight is scheduled to emerge from Chapter 11 as a fully restructured company by late May 2011.
As confirmed, the Plan restructures the Company's consolidated balance sheet by reducing outstanding debt by approximately $162 million and facilitating a new capital infusion of approximately $40 million. Under the Plan, all outstanding shares of the Company's common stock will be extinguished on the Plan's effective date. In addition, the Bankruptcy Court approved an order that would restrict, under certain circumstances, the trading of the Company's common stock by entities that hold more than 4.5% of the Company's common stock in order to preserve the full amount of the Company's net operating losses.
Molecular Insight expects its Plan to become effective on or about May 20, 2011, once all closing conditions have been met.
"The reorganization plan and new capital structure will allow Molecular Insight to emerge from Chapter 11 with the financial flexibility necessary to maximize our growth potential in the molecular medicine field," said Harry Stylli, President and Chief Restructuring Officer of Molecular Insight.
On December 9, 2010, Molecular Insight filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the District of Massachusetts. Additional information surrounding the Company's restructuring, including copies of the Plan and Confirmation Order, are available at www.omnimgt.com/molecular.
About Molecular Insight Pharmaceuticals, Inc.
Molecular Insight Pharmaceuticals is a clinical-stage biopharmaceutical company and pioneer in molecular medicine. The Company is focused on the discovery, development, and commercialization of targeted therapeutic and imaging radiopharmaceuticals for use in oncology. For further information, please visit the Company's website: www.molecularinsight.com.
Statements in this release that are not strictly historical in nature are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the anticipated date of emergence from the bankruptcy and the impact thereof on the Company's operations. Such forward-looking statements also include, but are not limited to, the impact of the Chapter 11 proceedings on our business, financial condition or results of operations; our ability to consummate our plan of reorganization and the transactions contemplated by such plan; and those factors identified in our filings with the SEC. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results of Molecular Insight to be materially different from historical results or from any results expressed or implied by such forward-looking statements. The risks and uncertainties and the terms of any reorganization plan ultimately confirmed can affect the value of our various pre-petition liabilities, common stock and/or other securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of our liabilities and/or securities receiving no value for their interests. Because of such possibilities, the value of these liabilities and/or securities is highly speculative. Accordingly, we urge that caution be exercised with respect to existing and future investments in any of these liabilities and/or securities. Investors and other interested parties can obtain information about our court filings and claims information on www.omnimgt.com/molecular. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our view only as of the date of this release, and which we assume no obligation to update. The Company's SEC filings are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at http://www.sec.gov. Press releases for Molecular Insight Pharmaceuticals, Inc. are available on our website: http://www.molecularinsight.com. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
Mark A. Attarian
Interim Executive Vice President and
Chief Financial Officer