The U.S. Bankruptcy Court approved KaloBios Pharmaceuticals’ compromise and motion for entry of interim and final orders approving a stipulation of settlement by and between the Debtor and Martin Shkreli resolving the claims asserted Mr. Shkreli in proof of claim (POC) No. 89.
As previously reported, “Importantly, the Stipulation also grants the Debtor a Call Option on Mr. Shkreli’s stock following the Company’s exit from chapter 11 and commits Mr. Shkreli to signing a shareholder agreement which will significantly limit the actions he can take as a shareholder for 24 months following exit. In addition, the parties will exchange mutual releases, which will free the Debtor from potential indemnification or advancement claims related to Mr. Shkreli’s tenure as an officer and director of the Debtor. Avoiding the burden, expense and uncertainty of litigation of the merits of Mr. Shkreli’s claims and interests, and agreeing to the treatment of his claims and interests, will free the Debtor from legal expense that would otherwise be incurred post-confirmation to submit and to resolve an objection to Mr. Shkreli’s POC or litigate concerning his stock holdings. If the Stipulation is approved, this effort and related expenditures will be obviated and, as a result, the feasibility of the Plan will be enhanced.”
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