The US Bankruptcy Court approved first amended combined amended plan of liquidation of Clarus Therapeutics Holdings, Inc., on February 9, 2023. The debtor has filed its amended plan in the Court on December 21, 2022. As per the amended plan, administrative claims, professional fee claims, U.S. Trustee fees, Indenture Trustee fees, other secured claim and expenses and priority non-tax claims, shall be paid in full in cash.

Prepetition indenture secured claims of $43.13 million minus prepetition indenture deficiency claims of $35.88 million shall be recovered between 19%-26% and shall receive all remaining cash and all asset sale proceeds, minus the GUC priority amount; the first D&O policy proceeds in an amount equal to $3.02 million; and all proceeds of any prepetition employee payments avoidance actions; or such other treatment. General unsecured claims of $14 million shall be recovered between 0.7%-13% and shall receive pro rata share of the creditor trust interest. Prepetition indenture deficiency claims of $35.88 million shall receive pro rata share of the creditor trust interest.

Subordinated claims shall receive no distribution under the plan. Interests shall be cancelled and shall not receive any distribution under the plan. The plan shall be funded through cash and sale of assets.