Judge 'Taken Aback' By Vivus Equity Tradeoff In Ch. 11

Law360 (July 10, 2020, 7:41 PM EDT) -- A Delaware bankruptcy judge said Friday that she was "taken aback" by conditions set by biopharmaceutical company Vivus Inc. for payments to otherwise wiped out stockholders in a prepackaged $235 million Chapter 11 restructuring, but she took no action on the provision at an initial case hearing.

The plan provision, also questioned by the Office of the U.S. Trustee, offers an "existing stock settlement" and contingent value rights to stockholders worth up to $2.28 per share provided they forgo any objection, effort to form an equity committee, actions against officers or directors or other challenges to the plan.

U.S. Bankruptcy Judge...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!