Delist Monday morning upon market open.
I read the info posted below, and it certainly sounds like new shares will be issued....I've played a lot of these BK/delistings and this sounds like existing commons are to be cancelled prior to reorg. Anyone have an different angle?
Melinta Therapeutics, Inc. (NASDAQ: MLNT) (the “Company” or “Melinta”), a commercial-stage company focused on the development and commercialization of novel antibiotics to treat serious bacterial infections, today announced that it has entered into a Restructuring Support Agreement (the “Agreement”) with the lenders under its senior credit facility, Deerfield Private Design Fund III, L.P. and Deerfield Private Design Fund IV, L.P. (the “Supporting Lenders”). Under the Agreement, the Supporting Lenders would acquire the Company as a going concern by exchanging $140 million of secured claims arising under its senior credit facility for 100 percent of the equity to be issued by the reorganized Company pursuant to a pre-negotiated chapter 11 plan of reorganization.
100% of equity ISSUED by reorg Company is an aggressive approach...especially seeing that the Company wasn't delisted yet, or had the Q added to the ticker. I DONT like this one as an DCB play.
ANYONE? BUELLER... BUEller?
The stock market is an predator / prey scenario where the Companies and their lenders are the predators and retail IS the prey. Play wisely!
