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Molecular Insight Files for Bankruptcy Protection

http://www.boston.com/business/healthcare/articles/2010/12/11/in_deal_molecular_insight_files_chapter_11/

›December 11, 2010

CAMBRIDGE — Molecular Insight Pharmaceuticals Inc. (MIPI) said yesterday it is filing for Chapter 11 bankruptcy protection as part of an agreement with an investor that will buy 90 percent of its stock.

The company said it will get a $45 million investment from Savitr Capital LLC, which will buy Molecular Insight’s stock at 45 cents per share. The company is also making management changes as part of the agreement, which calls for it to complete its restructuring by March 31. It will also have to resolve issues related to its cancer drug candidate Onalta. The investment is contingent on approval to replace the company’s $195 million in bonds with $90 million in secured senior notes that will mature in six years.

President and chief executive Daniel Peters and chief financial officer Charles Abdalian have both resigned, and the company named Harry Stylli as restructuring chief and Mark Attarian as interim financial chief.

The stock closed yesterday at 26 cents after falling 48 cents. The stock has traded between 70 cents and $4.49 over the last year.‹