KaloBios Pharmaceuticals released a corporate statement in response to the emergency motion filed by the U.S. Trustee assigned to the case seeking an order directing the appointment of a trustee or, in the alternative, conversion to a liquidation under Chapter 7.
The release argues, “KaloBios Pharmaceuticals is deeply disappointed that the U.S. Trustee took the unfortunate and unnecessary step of filing this motion at what is a critical juncture in KaloBios’s nascent reorganization case. After focusing on stabilizing its operations during the initial few weeks of its reorganization case, KaloBios’s leadership has recently been able to apply more of its attention to the path forward for the company. KaloBios’s leadership, key personnel and professional advisors are dedicated to the company’s revitalization and are working tirelessly toward that goal.”
The release further argues, “KaloBios vigorously disputes the motion’s baseless allegations and that there is any cause for the appointment of a chapter 11 trustee or other relief that would be disruptive to the company’s current reorganization efforts. Unfortunately, the U.S. Trustee did not contact KaloBios in advance of the filing of the motion. Had there been an opportunity for such pre-filing communication, KaloBios could have informed the U.S. Trustee that several of the factual premises for the motion are false, including, but not limited to, the assertions that a transaction with Savant neglected Diseases LLC is now off the table and that KaloBios has only $2.9 million in unencumbered cash. KaloBios intends to request a prompt hearing on the motion before the Bankruptcy Court.”
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