KaloBios Pharmaceuticals Inc. has lined up $14 million in loans to see it through and out of bankruptcy, financing that could be paid off in the form of bargain-priced stock that would water down the holdings of former chief executive Martin Shkreli.
Nomis Bay Ltd. has joined Black Horse Capital LP in offering loans designed to fund a deal to get KaloBios back on its feet and soothe a sore spot--the company’s association with Mr. Shkreli, who attained notoriety for hiking the price of a vital drug by 5,000% last year.
KaloBios was on the point of being liquidated last November when Mr. Shkreli took control of it, after which the stock price rose.
