Item 8.01 Other Events.
On June 12, 2020, the Bankruptcy Court entered an order confirming the Debtor's
Modified Combined Chapter 11 Plan and Disclosure Statement (the "Plan") filed by
Aradigm Corporation (the "Company"). The Effective Date (the "Effective Date ")
of the Plan will be June 29, 2020. The Company will be dissolved and its stock
cancelled as of the Effective Date after market close and the Company's assets
will be contributed to a Liquidating Trust.
As described in the Forms 8K filed by the Company on April 3, 2020 and on
April 13, 2020, the Company sold its assets and intellectual property that
pertain to Lipoquin, Free Ciprofloxacin, Apulmiq and any derivatives thereof to
Grifols S.A. for cash, the right to receive milestone payments on the occurrence
of certain events and the right to receive royalty payments based on future
sales of the product. The Combined Plan provides that on the Effective Date of
the Plan these assets (less amounts paid for certain expenses), as well as the
Company's other assets, will be contributed to a Liquidating Trust for the
benefit of the Company's creditors and shareholders. As mentioned above, the
Company's stock will be cancelled as of the Effective Date (June 29) after
market close and the Company will be dissolved. Creditors and shareholders will
receive a pro rata interest in the Liquidating Trust. The Liquidating Trust will
satisfy the claims of the Company's priority creditors and will collect any
milestone payments and royalty payments that are earned and distribute the
proceeds to the Company's creditors. After creditors are paid in full with
interest, the Liquidating Trust will distribute any remaining proceeds that are
received to the Company's shareholders.
The address of the Liquidating Trust from and after June 29, 2020 will be
Aradigm Corporation Liquidating Trust, c/o Susan L. Uecker, Liquidating Trustee,
Uecker & Associates, Inc., 1613 Lyon Street, Suite A, San Francisco, CA 94115.
The Plan is on file with the Bankruptcy Court. This description of the Combined
Plan is qualified in its entirety by the terms of the Plan.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release of Aradigm Corporation dated June 15, 2020
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