An equity holder of Vivus, Inc. asked the U.S. Bankruptcy Court for the District of Delaware to issue an order directing the appointment of a committee of equity holders in the Chapter 11 cases of the company and its affiliates.
Steven Chlavin, holder of approximately 5.5 percent of the equity interests in Vivus, said equity holders are the only stakeholders that stand to lose anything under the companies’ joint prepackaged Chapter 11 plan of reorganization.
“They were not represented in the negotiations that ultimately resulted in the proposed plan,” Mr. Chlavin said in court papers.
“In the absence of an official committee, equity will not be adequately represented now and through the confirmation process, given the complexity of these cases,” he further said.
Mr. Chlavin said there is likelihood that equity is “in the money,” pointing out that the public record and the companies’ own statements to investors “show an enterprise that is ready to spring into profitability.”
Mr. Chlavin is represented by:
John D. Demmy, Esq.
Lucian Murley, Esq.
Saul Ewing Arnstein & Lehr LLP
1201 N. Market Street , Suite 2300
P.O. Box 1266
Wilmington, DE 19899
About Vivus Inc
Vivus Inc is a biopharmaceutical company committed to the development and commercialization of innovative therapies that focus on advancing treatments for patients with serious unmet medical needs. It was incorporated in 1991 in California and reincorporated in 1996 in Delaware. As of the petition date, Vivus is a publicly traded company with its shares listed on the Nasdaq Global Market LLC under the ticker symbol “VVUS.” Vivus maintains its headquarters in Campbell, Calif. Visit https://www.vivus.com for more information.
Vivus and three of its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 20-11779) on July 7, 2020. The petitions were signed by Mark Oki, chief financial officer. Judge Laurie Selber Silverstein presides over the cases.
As of May 31, 2020, Debtors reported total assets of $213,884,000 and total liabilities of $281,669,000.
The Debtors tapped Weil Gotshal & Manges LP as their general bankruptcy counsel, Richards, Layton & Finger P.A. as local counsel, Ernst & Young as financial advisor, and Piper Sandler Companies as investment banker. Stretto is the claims and noticing agent.