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12/27/19 9:10AM
MLNT files for Ch.11 in a prepack with no equity recovery
Melinta Therapeutics Announces Restructuring Support Agreement with its Secured Lenders under its Senior Credit Facility
~ Company Initiates Voluntary Chapter 11 Process to Effectuate Restructuring Transaction While Continuing Normal-Course Operations ~
MORRISTOWN, N.J., December 27, 2019... login to read the rest
Not much meat left on this bone, we are closing the recommendation with the stock down nearly 80%. Although it is probably an actual 0 in the next 3-6 months, borrow is expensive and we're... login to read the rest
10-Q discloses likely bankruptcy with no equity recovery
There are certain financial-related covenants under our Deerfield Facility, as amended in January 2019, including requirements that we (i) file an Annual Report on Form 10-K for the year ending December 31, 2019, with an... login to read the rest
MLNT 8-k today confirming the company will not meet requireements necessary to get remaining commitment from Vatera. We still expect outright default in next few months or highly dilutive equity dump.
Given the likelihood that a... login to read the rest
Congrats on the phenomenal timing on this short!
Sure does look like the only alternatives here are some sort of highly dilutive financing or a DIP loan.
Also, they mentioned they are holding off on rolling-out the drug until they figure out their liquidity situation. So another reminder for the market that they are up sht creek. That's hitting the stock hard
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