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PhaseRx Bankruptcy Appointment Sought, Objection Filed

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PhaseRx filed with the U.S. Bankruptcy Court an emergency motion to authorize the appointment of Catherine Campbell as the Debtor’s chief wind down officer.

The motion explains, “The Debtor respectfully requests, pursuant to 11 U.S.C. sections 105 and 363, that this Court authorize it to retain Ms. Campbell as its Wind Down Officer so that Ms. Campbell may oversee and facilitate the wind down of the Debtor’s affairs. The Debtor conducted a search for a wind down officer and ultimately concluded that Ms. Campbell was well equipped to serve as the Debtor’s Wind Down Officer. Ms. Campbell’s services will include working with Debtor’s counsel to promulgate and confirm a plan of liquidation or otherwise wind down the bankruptcy estate, overseeing the liquidation or abandonment of any remaining assets, reviewing claims and equity interests, making a distribution, if any, closing of the Case, and facilitating the dissolution of the Debtor.”

In addition, “Ms. Campbell’s services are needed because the Debtor’s current officers and directors will resign from their duties of management and oversight of the Debtor after the sale of substantially all of the Debtor’s assets….It has been agreed by and among the Debtor and Ms. Campbell that the fees for this engagement will be fixed at $200 per hour and a $10,000 retainer.” The Debtors also filed with the Court a motion to shorten notice with respect to this emergency motion, and the U.S. Trustee assigned to the case objected: “The grounds for the relief sought do not present an appropriate reason for granting the relief requested. In addition, the Debtor knew weeks ago about the timing and scheduling of the sale procedures and the hearing on the sale and could have filed the Motion in order to have it heard on the required regular notice. It is the Debtor’s delay that has caused the time issue.”

Read more PhaseRx bankruptcy news.