The US Bankruptcy Court approved the second modified first amended plan of reorganization of Melinta Therapeutics, Inc. on April 11, 2020. The debtor has filed its second modified first amended plan in the Court on March 31, 2020. As per the amended plan, administrative claims, professional claims, other priority claims will be in the amount of $0.75 million, other secured claims will be in the range $0 to $0.1 million and secured prepetition credit agreement claims will be $142.43 million with a recovery rate of 98% and will be paid full in cash.

Secured Prepetition Credit Agreement Claims shall receive: (1) If the supporting lenders are the successful bidders, the holder's pro rata share of 100% of the reorganized Melinta common stock; or (2) If a third-party bidder is the successful bidder, the holder's pro rata share of the distributable cash, until all secured prepetition credit agreement claims are paid in full. General unsecured claims of $14 million shall be recovered 21% i.e. $2.94 million and be settled in cash, only if supporting lenders are the successful bidder. If supporting lenders are not the successful bidder, then general unsecured claims shall be allowed in the amount $187 million and be recovered 0.8% i.e. $1.50 million, which shall be settled by pro rata distribution of cash.

Intercompany Claims and Intercompany Interests shall be reinstated or deemed automatically canceled, released and extinguished. Section 510(b) Claims and Recharacterized Claims shall be cancelled. Interests in Melinta Therapeutics shall be deemed automatically cancelled, release, discharge and extinguished.

The plan will be funded through cash, sale of assets, excess balance available in Disputed Claims Reserve and issue of reorganized Melinta common stock.