Night is here:
>>MEDFORD, Mass., Nov. 24 /PRNewswire-FirstCall/ -- BioTransplant, Incorporated (BTRNQ.PK) announced today that its board of directors has approved the liquidation of the Company's remaining assets. The Company projects that proceeds of liquidation will not likely be sufficient to provide any distribution to the Company's shareholders.
On February 27, 2003, the Company and its wholly-owned subsidiary, Eligix, Inc., filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court in Boston, Massachusetts. The Company's goal was to utilize Chapter 11 to preserve the Company's assets, cut back expenses, provide for the near-term payment in full of outstanding liabilities, and emerge from Chapter 11 with the prospect of realizing long- term value for shareholders from the Company's intellectual property. However, the Company believes that the value of preexisting licenses and transactions available to the Company since the Chapter 11 filing have not proved sufficient to meet these goals.
The Company expects to file with the Bankruptcy Court in the coming weeks a Chapter 11 plan providing for appointment of a trustee to liquidate assets, wrap up the Company's affairs, make a cash distribution to creditors and, if there are any remaining funds, then make a cash distribution to holders of the Company's common stock as of the effective date of the plan. The plan will be subject to approval by the Company's general unsecured creditors and the Bankruptcy Court.
Although the timing cannot be predicted with certainty and is subject to change, the Company estimates that the effective date of the plan will occur in early 2004. On the effective date, the Company expects to notify the Pink Sheets LLC that the Company is defunct and will close its stock transfer books, which would generally prohibit any further transfers of its shares after the effective date of the Chapter 11 plan.<<
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