Novan, Inc., along with its affiliate, filed a combined plan of liquidation and disclosure statement in the US Bankruptcy Court on November 22, 2023. As per the plan filed, Administrative Claims, Tax Claims, professional fee claims, Other Priority Claims of $0.4 million, and Other Secured Claims of $1.9 million shall be paid in full in cash. NVN Unsecured Claims of $12 million shall be recovered 1% i.e., $0.12 million, and EPI Unsecured Claims of $29 million shall be recovered 15% i.e., $4.35 million shall be paid on pro rata basis in cash.

Allowed Subordinated Claims shall receive no Distribution on account of their claims. Equity Interests shall be cancelled. The plan shall be funded through cash in hand and asset sale. Novan, Inc., along with its affiliate, filed a combined modified plan of liquidation and disclosure statement in the US Bankruptcy Court on December 13, 2023.

As per the plan filed, EPI Unsecured Claims has changed from of $27 million shall be recovered 15% i.e., $4.05 million shall be paid on pro rata basis in cash. There are no changes in treatment of any other claim class or sources of plan funding.