First Amended Combined Joint Liquidation Plan & Disclosure Statement Approved for Valeritas Holdings, Inc.
June 08, 2020 at 12:00 am EDT
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The US Bankruptcy Court approved the first amended combined joint plan of liquidation of Valeritas Holdings, Inc. on June 8, 2020. The debtor has filed its first amended plan in the Court on April 15, 2020. As per the amended plan, administrative claims, priority tax claims, fee claims and other priority claims, shall be paid in full in cash. CRG secured claim of $2.99 million shall be recovered 15% i.e. $0.45 million and shall receive 90% of net sale proceeds from the sale proceeds, 50% of the savings, if any, from the professional fee reserves and the revised administrative escrow pursuant to the amended settlement, in the event that general unsecured claims have received distributions from the plan escrow and creditors’ trust equal to 75% of their allowed general unsecured claims, the next $2 million of distributions from the creditors trust on account of the unpaid portion of the CRG secured claim. In the event that general unsecured claims have received distributions from the plan escrow and creditors’ trust equal to 75% of such claims and CRG secured claims has received the next distributions of $2 million on account of the unpaid portion of the CRG secured claim, prepetition lenders unsecured claim of$0 shall be entitled to receive pro rata distributions from the creditors trust with respect to any further distributions. General unsecured claims of $0.33 million shall be recovered 9.7% i.e. $0.03 million and shall receive pro rata distributions from the creditors trust and plan escrow up to 75% of the face value of such claims. After receiving 75% of the face value of such general unsecured claims, general unsecured claims shall not receive further distributions from the creditors trust until $2 million is paid to CRG secured claims on account of the unpaid portion of the CRG secured claim, whereupon Holders of general unsecured claims shall share any further distributions from the creditors trust on a pro rata basis with prepetition lenders unsecured claims. Intercompany claims shall not receive any distribution under the plan and shall be released and expunged. Preferred stock and common stock shall receive any distribution under the plan and shall be cancelled. The plan shall be funded through cash and sale of assets.
Valeritas Holdings, Inc. is a United States-based medical technology company. The Company's product, V-Go Wearable Insulin Delivery device (V-Go), is a wearable, basal-bolus insulin delivery device for adult patients requiring insulin that enables patients to administer a continuous preset basal rate of insulin over 24 hours. V-Go is a small wearable and completely disposable insulin delivery device that a patient adheres to his or her skin every 24 hours. V-Go enables patients to closely mimic the body's normal physiologic pattern of insulin delivery throughout the day and to manage their diabetes with insulin without the need to plan a daily routine around multiple daily injections. It has developed V-Go utilizing its h-Patch platform as a patient-focused solution to address insulin therapies. Its h-Patch platform facilitates the subcutaneous delivery of injectable medicines to patients across a range of therapeutic areas.
VALERITAS HOLDINGS, INC. 
