Item 8.01 Other Events.

As described in the Form 8-K filed by Aradigm Corporation (the "Company") on April 30, 2020, the Bankruptcy Court entered an order (i) conditionally approving the disclosure statement for the Combined Chapter 11 Plan and Disclosure Statement (the "Combined Plan") filed by Aradigm Corporation (the "Company"); (ii) directing the Company to distribute the Combined Plan to creditors and shareholders for voting; and (iii) fixing April 24, 2020 as the record date for shareholders and creditors to vote.

As described in the Forms 8-K filed by the Company on April 3, 2020 and on April 13, 2020, the Company sold its assets and intellectual property that pertain to Lipoquin, Free Ciprofloxacin, Apulmiq and any derivatives thereof to Grifols S.A. for cash, the right to receive milestone payments on the occurrence of certain events and the right to receive royalty payments based on future sales of the product. The Combined Plan provides that on the Effective Date of the Combined Plan these assets (less amounts paid for certain expenses), as well as the Company's other assets, will be contributed to a liquidating trust for the benefit of the Company's creditors and shareholders. The Company's stock will be cancelled and creditors and shareholders will receive a pro rata interest in the liquidating trust. The liquidating trust will satisfy the claims of the Company's priority creditors and will collect any milestone payments and royalty payments that are earned and distribute the proceeds to the Company's creditors. After creditors are paid in full with interest, the liquidating trust will distribute any remaining proceeds that are received to the Company's shareholders.

The deadline for creditors and shareholders to return their ballots voting on the Combined Plan was June 1, 2020. All classes of creditors and the requisite majority of shareholders voted to accept the Combined Plan.

The Combined Plan is subject to the approval of the Bankruptcy Court. The Bankruptcy Court has scheduled a hearing for June 10, 2020 to consider whether to confirm the Combined Plan as provided in 11 U.S.C. § 1129. Aradigm anticipates that the Bankruptcy Court is likely to confirm the Combined Plan, that the Effective Date of the Combined Plan will be June 26, 2020, and that the cancellation of the Company's stock will occur on the Effective Date after market close.

The Combined Plan is on file with the Bankruptcy Court. This description of the Combined Plan is qualified in its entirety by the terms of the Combined Plan.

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