Unilife filed with the U.S. Bankruptcy Court a compromise motion for approval of the settlement of certain claims with present and former officers and directors and certain plaintiffs and their counsel.
The agreement notes, “The settlement agreement includes the following principal terms: no later than 10 business days after the effective date, the Individual defendants shall cause National Union to make a payment of $1,125,000, the ‘Settlement Payment’, in full and final settlement of the D&O claims. The Debtors shall retain $1,000,000 for the benefit of the estates…. The settlement will eliminate the risk, cost and delay of litigating the D&O claims, will fully resolve any substantial contribution or other claims that the Derivative Plaintiffs or Derivative Counsel may assert, and will result in the estates realizing a net recovery of $1 million. The $1 million payment will enable the Debtors to confirm their liquidating plan, and will be utilized to satisfy allowed administrative claims with the balance of the funds transferred to the liquidating trust to fund its fees and expenses and a distribution to holders of unsecured claims.”
The Court scheduled a November 28, 2017 hearing to consider the motion, with objections due by November 21, 2017.
Read more Unilife bankruptcy news.