Boston, MA 09/17/2014 (wallstreetpr) – Pharmaceutical company, SIGA Technologies, Inc. (NASDAQ:SIGA) disclosed that it has preferred the route of Chapter 11 bankruptcy protection to not only preserve itself, but also assure its capability to satisfy its commitment to supply antiviral smallpox drug, Tecovirimat.
Bankruptcy Protection
The company said that it has voluntarily filed a petition for relief before the U.S. Bankruptcy Court of the New York Southern District as per the Chapter 11 of the U.S. Bankruptcy Code, its press statement revealed. The company also said that it has initiated the process to ensure its commitment to the Strategic National Stockpile in the U.S. as per the Project BioShield Act of 2004 so as to supply antiviral smallpox drug.
SIGA Technologies, Inc. (NASDAQ:SIGA) plans to function as a going concern under the Chapter 11 period for the benefit of every economic stakeholder, as well as, the U.S. government. The filing would also ensure that there would not be any issue in supplying its Tecovirimat drug following its agreement with the Biomedical Advanced Research and Development Authority or BARDA. Besides, it would also follow its meritorious appeal of pending proceedings in Delaware Chancery Court.
Background Of Case
The company indicated earlier that the Delaware Chancery Court has issued an unfavorable order in the litigation filed by PharmAthene, Inc. in 2006. Among other things, the court has ruled that PharmAthene was entitled to damages of a lump sum with interest and fees based on the purchases of smallpox drug made by the U.S. government that alleged to have been expected as of December 2006.
Though the court has not disclosed the amount of damages to be slapped against SIGA Technologies, the company believes it could be a substantial amount and that enforcement of such a judgment would jeopardize its ability and viability to produce and deliver the smallpox drug.
Management Comments
SIGA Technologies, Inc. (NASDAQ:SIGA) Chairman and Chief Executive Officer, Eric Rose, said that the company has enough liquidity to conduct its operations apart from satisfying all its contractual commitments. It would pursue its appellate rights in the court.
