Attached files
file | filename |
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8-K - FORM 8-K - MiddleBrook Pharmaceuticals, Inc. | c02661e8vk.htm |
EX-99.1 - EXHIBIT 99.1 - MiddleBrook Pharmaceuticals, Inc. | c02661exv99w1.htm |
Exhibit 99.2
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
DISTRICT OF DELAWARE
In re:
|
) | Chapter 11 | ||||
) | ||||||
MIDDLEBROOK PHARMACEUTICALS,
|
) | Case No. 10-11485 (MFW) | ||||
INC.,1
|
) | |||||
) | ||||||
) | ||||||
Debtor.
|
) |
FINAL ORDER ESTABLISHING NOTIFICATION AND HEARING
PROCEDURES FOR TRANSFERS OF EQUITY SECURITIES
PROCEDURES FOR TRANSFERS OF EQUITY SECURITIES
Upon the Motion for Interim and Final Order Pursuant to Sections 105, 362, and 541 of the
Bankruptcy Code and Bankruptcy Rule 3001 Establishing Notification and Hearing Procedures for
Trading in Equity Securities (the Motion), filed by MiddleBrook Pharmaceuticals, Inc., the
above-captioned debtor and debtor in possession, (the Debtor), seeking, among other things, an
order, pursuant to Sections 105(a), 362, and 541 of the Bankruptcy Code, (i) establishing notice
and waiting periods to govern transfers of MiddleBrook Stock (as defined herein) and procedures for
objecting to such transfers in certain circumstances (the Securities Trading Procedures) and (i)
determining that any transfer of a beneficial interest in MiddleBrook Stock in violation of the
Securities Trading Procedures is void ab initio; and the Court having jurisdiction to consider the
Motion and the relief requested therein in accordance with 28 U.S.C. §§ 157 and 1334; and
consideration of the Motion and the relief requested therein being a core proceeding pursuant to 28
U.S.C. § 157(b); and venue being proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409;
and upon the issuance of an interim order approving the Motion (the Interim Order) [Docket No.
31]; and due and proper notice of the Motion having been provided; and upon the Declaration of
David Becker, the
Debtors Executive Vice President, Chief Financial Officer, and Acting President and Chief
Executive Officer of MiddleBrook Pharmaceuticals, Inc., in Support of Chapter 11 Petition and First
Day Motions; and the Court having determined that the relief sought in the Motion is in the best
interests of the Debtor, its estate and its stakeholders, and all parties in interest, and that the
legal and factual bases set forth in the Motion establish just cause for the relief granted herein;
and after due deliberation and sufficient cause appearing therefor,
1 | The last four digits of the Debtors taxpayer
identification number are 8264. The Debtors mailing address is 7 Village
Circle, Suite 100, Westlake, Texas 76262. |
THE COURT HEREBY FINDS THAT:
1. The Debtors net operating loss (NOL) carryforwards are property of the Debtors estate
and are protected by the automatic stay under Section 362 of the Bankruptcy Code.
2. Unrestricted trading of MiddleBrook Stock before the Debtors emergence from Chapter 11
could severely limit the Debtors ability, in connection with its eventual emergence from
bankruptcy, to take future deductions and losses attributable to its NOLs and to utilize its other
tax attributes for U.S. federal and state income tax purposes.
3. The Securities Trading Procedures and restrictions set forth herein are necessary and
proper to preserve the Debtors ability to take future deductions and losses attributable to its
NOLs and to use its other tax assets and are, therefore, in the best interests of the Debtor, its
estate, and its stakeholders.
4. The relief requested in the Motion is authorized under Sections 105(a), 362, and 541 of the
Bankruptcy Code.
IT IS THEREFORE ORDERED THAT
5. The Motion is GRANTED in all respects.
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6. Any transfer of a beneficial interest in MiddleBrook Stock in violation of the Securities
Trading Procedures is void ab initio.
7. The following Securities Trading Procedures shall apply to transfers of MiddleBrook Stock:
a. | Definitions: For purposes of this Final Order: |
i. | MiddleBrook Stock is any equity security in the
Debtor, including, without limitation, common stock and options. |
ii. | An option to acquire stock includes all interests
described in Treasury Regulations Section 1.382-4(d)(9), including any
contingent purchase, warrant, convertible debt, put, stock subject to risk
of forfeiture, contract to acquire stock, or similar interest, regardless
whether it is contingent or otherwise not able to be currently exercised. |
iii. | beneficial ownership of MiddleBrook Stock shall be
determined in accordance with the constructive ownership rules that apply
for purposes of Section 382 and the Treasury Regulations thereunder, and
shall include, without limitation, indirect ownership (for example, (i) a
holding company is considered to beneficially own stock owned by its
subsidiaries, (ii) a partner in a partnership (or other entity treated as a
partnership for U.S. federal income tax purposes) is considered to
beneficially own a proportionate interest in stock owned by the
partnership, and (iii) persons or entities acting in concert with a holder
to make a coordinated acquisition may be treated as a single entity), and
any variations of the term ownership (for example, own or owner)
shall have correlative meanings; |
iv. | A Substantial Equityholder is any person or entity
that beneficially owns at least 4,109,315 shares of MiddleBrook Stock,
which represents approximately 4.75 percent of all issued and outstanding
shares of MiddleBrook Stock.2 |
b. | Procedure for Transfers of MiddleBrook Stock: |
i. | Notice of Substantial MiddleBrook Stock Ownership: Any
person or entity (for purposes of the Motion and this Final Order, as such
terms are defined for purposes of Section 382, and including persons acting
pursuant to a formal or informal understanding among themselves to make a
coordinated acquisition) that beneficially owns, at any time on or after
the date this Motion was filed (the Motion Date), MiddleBrook Stock in an
amount sufficient to qualify such person or entity as a Substantial
Equityholder must file with this Court and serve upon the Debtor and counsel
to the Debtor, a notice of such status, in the form attached hereto as
Exhibit A, on or before the later of (A) 20 calendar days after the
effective date of the notice of entry of the Final Order or (B) 10 calendar
days after becoming a Substantial Equityholder. |
2 | As of the Petition Date, the Debtor had approximately
86,511,898 outstanding shares of common stock. |
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ii. | Acquisition of MiddleBrook Stock: At least 30 calendar
days before the effective date of any transfer of MiddleBrook Stock that
would result in an increase in the amount of MiddleBrook Stock beneficially
owned by a person or entity that is or subsequently becomes a Substantial
Equityholder or would result in a person or entity becoming a Substantial
Equityholder, such person or entity must serve on the Debtor and counsel to
the Debtor, advance written notice, in the form attached hereto as Exhibit
B of the intended transfer of MiddleBrook Stock. |
iii. | Disposition of MiddleBrook Stock: At least 30 calendar
days before the effective date of any transfer of MiddleBrook Stock that
would result in a decrease in the amount of MiddleBrook Stock beneficially
owned by a person or entity that is a Substantial Equityholder or would
result in a person or entity ceasing to be a Substantial Equityholder, such
person or entity must serve on the Debtor and counsel to the Debtor,
advance written notice, in the form attached hereto as Exhibit C of the
intended transfer of MiddleBrook Stock. |
iv. | Objection Procedures: The Debtor shall have 30 business
days after receipt of any of the aforementioned notices to file with this
Court and serve on the person or entity providing such notice an objection
to any proposed transfer of MiddleBrook Stock described in the notice on
the grounds that such transfer might adversely affect the Debtors ability
to use its Tax Attributes. If the Debtor files an objection, the
transaction described in the notice shall not be effective unless approved
by a final, nonappealable order of this Court. If the Debtor does not
object within the 30 business day period, the transaction described in the
notice may proceed solely as set forth in the notice. Any further
transactions by the person or entity providing the notice must be the
subject of additional notices as set forth herein, with an additional 30
calendar day waiting period. |
v. | Noncompliance with the Securities Trading Procedures:
Any purchase, sale, or other transfer of MiddleBrook Stock in violation of
the Security Trading Procedures shall be null and void ab initio and shall
confer no rights on the transferee. |
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vi. | Debtors Right to Waive: The Debtor may waive, in
writing and in its sole discretion, all restrictions, stays, and
notification procedures contained in this Final Order or in any other order
entered on the Motion. |
vii. | Confidentiality: The Debtor, its counsel and counsel
for any Creditors Committee (if appointed) shall keep all information
provided in acquisition or disposition notices delivered pursuant to this
Final and any other order on the Motion strictly confidential and shall not
disclose the contents thereof to any person (including any member of any
Creditors Committee (if appointed)), except (i) to the extent necessary to
respond to a petition or objection filed with the Court, (ii) to the extent
otherwise required by law, or (iii) to the extent that the information
contained therein is already public; provided, however, that the Debtor may
disclose the contents thereof to its professional financial advisers, who
shall keep all such notices strictly confidential and shall not disclose
the contents thereof to any other person subject to further Court order.
To the extent confidential information is necessary to respond to a
petition or objection filed with the Court, such confidential information
shall be filed under seal or in redacted form. |
8. Notwithstanding Rules 6004 and 7062 of the Federal Rules of Bankruptcy Procedure, the terms
and conditions of this Final Order shall be immediately effective and enforceable upon its entry.
9. As soon as reasonably possible, but not later than five business days after entry of this
Final Order, the Debtor shall serve this Final Order on (a) the United States Trustee, (b) the
United States Securities and Exchange Commission, (c) the Office of the United States Attorney
General for the District of Delaware, (d) the Internal Revenue Service, (e) the Debtors thirty
largest unsecured creditors on a consolidated basis, (f) any identified Substantial Equityholder,
and (g) American Stock Transfer & Trust Company (the Stock Transfer Agent). The Debtor may also
file a copy of the Final Order as an exhibit to a report on Form 8-K filed with the Securities and
Exchange Commission.
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10. The Stock Transfer Agent, and any other agent for any MiddleBrook Stock shall serve this
Final Order on all holders of more than 2 millions shares of MiddleBrook Stock
registered with such agent (the Registered Holders) no later than five business days after
being served with the Notice of Order3; provided, however, that if the Stock Transfer
Agent or any other agent for the MiddleBrook Stock provides the Debtor with the names and addresses
of all holders of such shares of MiddleBrook Stock registered with it no later than three business
days after being served the Notice of Order, the Debtors shall serve the Notice of Order on such
holders. Such names and addresses shall be delivered in writing to the attorney for the Debtor.
11. The requirements set forth in this Final Order are in addition to the requirements of
Bankruptcy Rule 3001(e) and applicable securities, corporate, and other laws, and do not excuse
compliance therewith.
12. The relief provided in this Final Order is in addition to, and not in lieu of, any and all
other rights and remedies available to the Debtor.
13. This Court shall retain jurisdiction with respect to all matters arising from or relating
to the interpretation or implementation of this Final Order.
Dated: June 7, 2010
Wilmington, Delaware
Wilmington, Delaware
/s/ Mary F. Walrath | ||||
Judge Mary F. Walrath | ||||
UNITED STATES BANKRUPTCY JUDGE |
3 | Capitalized terms not otherwise defined herein shall
have the meanings as set forth in the Motion. |
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EXHIBIT A
[DECLARATION OF STATUS AS SUBSTANTIAL EQUITYHOLDER]
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
DISTRICT OF DELAWARE
In re:
|
) | Chapter 11 | ||||
) | ||||||
MIDDLEBROOK PHARMACEUTICALS,
|
) | Case No. 10- (___) | ||||
INC.,4
|
) | |||||
) | ||||||
) | ||||||
Debtor.
|
) | |||||
DECLARATION
OF STATUS AS SUBSTANTIAL EQUITYHOLDER
PLEASE TAKE NOTICE is/has become a Substantial Equityholder5 with respect to the
equity securities of MiddleBrook Pharmaceuticals, Inc. (MiddleBrook) or any beneficial interest
therein. MiddleBrook is a debtor and debtor in possession in Case
No. 10-
(___) pending in the
United States Bankruptcy Court
for the District of Delaware.
PLEASE TAKE FURTHER NOTICE that as of , 2010,
beneficially owns shares of MiddleBrook Stock.
The following table sets forth the date(s) on which acquired beneficial ownership of MiddleBrook
Stock (attach additional pages if needed):
NUMBER OF SHARES OF | ||
MIDDLEBROOK STOCK | DATE ACQUIRED | |
PLEASE
TAKE FURTHER NOTICE that the last four digits of s taxpayer identification number are
.
PLEASE TAKE FURTHER NOTICE that, pursuant to the Interim Order Establishing Notification and
Hearing Procedures for Transfers of Equity Securities, this Declaration is being (a) filed with the
United States Bankruptcy Court for the District of Delaware, (b) served on the Debtor, and (c)
counsel to Debtor.
4 | The last four digits of the Debtors taxpayer
identification number are 8264. The Debtors mailing address is 7 Village
Circle, Suite 100, Westlake, Texas 76262. |
|
5 | All capitalized terms not otherwise defined herein
shall have the meanings accorded them as set forth in the Motion for Interim
and Final Order Pursuant to Sections 105, 362, and 541 of the Bankruptcy Code
and Bankruptcy Rule 3001 Establishing Notification and Hearing Procedures for
Trading in Equity Securities at D.I. 11. |
PLEASE TAKE FURTHER NOTICE that, pursuant to 28 U.S.C. § 1746, under penalties of perjury,
hereby declares that he or she has examined this Declaration and accompanying attachments (if any),
and, to the best of his or her knowledge and belief, this Declaration and any attachments which
purport to be part of this Declaration, are true, correct and complete.
Dated this th day of , 20 .
Respectfully Submitted, | ||||||
(Name of Substantial Equity Holder) | ||||||
By: | ||||||
Name: | ||||||
Address: | ||||||
Phone: | ||||||
Fax: | ||||||
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EXHIBIT B
[DECLARATION OF INTENT TO PURCHASE, ACQUIRE, OR
OTHERWISE ACCUMULATE EQUITY SECURITIES]
OTHERWISE ACCUMULATE EQUITY SECURITIES]
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
DISTRICT OF DELAWARE
In re:
|
) | Chapter 11 | ||||
) | ||||||
MIDDLEBROOK PHARMACEUTICALS,
|
) | Case No. 10- ( ) | ||||
INC.,6
|
) | |||||
) | ||||||
) | ||||||
Debtor.
|
) |
DECLARATION OF INTENT TO PURCHASE, ACQUIRE, OR
OTHERWISE ACCUMULATE EQUITY SECURITIES
OTHERWISE ACCUMULATE EQUITY SECURITIES
PLEASE TAKE NOTICE that hereby provides notice of its intent to purchase, acquire, or
otherwise accumulate one or more shares or beneficial interests of the equity securities of
MiddleBrook Pharmaceuticals, Inc. (MiddleBrook).
PLEASE TAKE FURTHER NOTICE that, if applicable, , filed a Declaration of Status as a
Substantial Equityholder7 with the United States Bankruptcy Court for the District of
Delaware (the Bankruptcy Court) and served copies thereof as set forth therein.
PLEASE TAKE FURTHER NOTICE that currently beneficially owns shares of MiddleBrook Stock.
PLEASE TAKE FURTHER NOTICE that, pursuant to the proposed transfer,
proposes to
purchase, acquire, or otherwise accumulate shares of MiddleBrook Stock. If the proposed transfer
is permitted to occur, will beneficially own
shares of MiddleBrook Stock after such transfer
becomes effective.
PLEASE TAKE FURTHER NOTICE that the last four digits of the taxpayer identification
number of
are .
PLEASE TAKE FURTHER NOTICE that, pursuant to the Interim Order Establishing Notification and
Hearing Procedures for Transfers of Equity Securities, this Declaration is being served on the
Debtor and counsel to the Debtor.
6 | The last four digits of the Debtors taxpayer identification number are 8264.
The Debtors mailing address is 7 Village Circle, Suite 100, Westlake, Texas 76262. |
|
7 | All capitalized terms not otherwise defined herein shall have the meanings accorded them as set
forth in the
Motion for Interim and Final Order Pursuant to Sections 105, 362, and 541 of the Bankruptcy
Code and Bankruptcy Rule 3001 Establishing Notification and Hearing Procedures
for Trading in Equity Securities at D.I. 11. |
PLEASE TAKE FURTHER NOTICE that the Debtor has 10 business days after receipt of this
Declaration to object to the proposed transfer described herein. If the Debtor files an objection,
such proposed transfer will not be effective unless approved by a final, non-appealable order of
the Bankruptcy Court. If the Debtor does not object within such 10-day period, then after
expiration of such period, the proposed transfer may proceed solely as set forth in this
Declaration.
PLEASE TAKE FURTHER NOTICE that any further transactions contemplated
by , which may result
in
purchasing, acquiring, or otherwise accumulating additional shares of MiddleBrook Stock, will each
require an additional notice filed with the Bankruptcy Court to be served in the same manner as
this Declaration.
PLEASE TAKE FURTHER NOTICE that, pursuant to 28 U.S.C. § 1746, under penalties of
perjury,
hereby declares that he or she has examined this Declaration and accompanying attachments (if any),
and, to the best of his or her knowledge and belief, this Declaration and any attachments which
purport to be part of this Declaration, are true, correct, and complete.
Dated this th day of , 20 .
Respectfully Submitted, | ||||||
(Name of Substantial Equity Holder) | ||||||
By: | ||||||
Name: | ||||||
Address: | ||||||
Phone: | ||||||
Fax: | ||||||
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EXHIBIT C
[DECLARATION OF INTENT TO SELL, TRADE, OR OTHERWISE TRANSFER
EQUITY SECURITIES]
EQUITY SECURITIES]
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
DISTRICT OF DELAWARE
In re:
|
) | Chapter 11 | ||||
) | ||||||
MIDDLEBROOK PHARMACEUTICALS,
|
) | Case No. 10- (___) | ||||
INC.,8
|
) | |||||
) | ||||||
) | ||||||
Debtor.
|
) |
DECLARATION OF INTENT TO SELL, TRADE, OR
OTHERWISE TRANSFER EQUITY SECURITIES
OTHERWISE TRANSFER EQUITY SECURITIES
PLEASE TAKE NOTICE that hereby provides notice of its intent to sell, trade, or otherwise
transfer one or more shares or beneficial interests of the equity securities of MiddleBrook
Pharmaceuticals, Inc. (MiddleBrook).
PLEASE TAKE FURTHER NOTICE that, if applicable, , filed a filed a Declaration of Status as a
Substantial Equityholder9 with the United States Bankruptcy Court for the District of
Delaware (the Bankruptcy Court) and served copies thereof as set forth therein.
PLEASE TAKE FURTHER NOTICE that currently
beneficially owns shares of MiddleBrook Stock.
PLEASE TAKE FURTHER NOTICE that, pursuant to the proposed transfer,
proposes to
sell, trade, or otherwise transfer
shares of MiddleBrook Stock. If the proposed transfer is
permitted to occur,
will beneficially own shares of MiddleBrook Stock after such transfer becomes
effective.
PLEASE TAKE FURTHER NOTICE that the last four digits of the taxpayer identification
number of
are .
PLEASE TAKE FURTHER NOTICE that, pursuant to the Interim Order Establishing Notification and
Hearing Procedures for Transfers of Equity Securities, this Declaration is being served on the
Debtor and counsel to the Debtor.
8 | The last four digits of the Debtors taxpayer identification number are 8264.
The Debtors mailing address is 7 Village Circle, Suite 100, Westlake, Texas 76262. |
|
9 | All capitalized terms not otherwise defined herein shall have the meanings accorded them as set forth
in the Motion for Interim and Final Order Pursuant to Sections 105, 362, and 541 of the
Bankruptcy Code and Bankruptcy Rule 3001 Establishing Notification and Hearing Procedures for Trading in
Equity Securities at D.I. 11. |
PLEASE TAKE FURTHER NOTICE that the Debtor has 10 business days after receipt of this
Declaration to object to the proposed transfer described herein. If the Debtor files an objection,
such proposed transfer will not be effective unless approved by a final, non-appealable order of
the Bankruptcy Court. If the Debtor does not object within such 10-day period, then after
expiration of such period, the proposed transfer may proceed solely as set forth in this
Declaration.
PLEASE TAKE FURTHER NOTICE that any further transactions contemplated by ,
which may result in
selling, trading, or otherwise transferring additional shares of MiddleBrook Stock, will each
require an additional notice filed with the Bankruptcy Court to be served in the same manner as
this Declaration.
PLEASE TAKE FURTHER NOTICE that, pursuant to 28 U.S.C. § 1746, under penalties of perjury,
hereby declares that he or she has examined this Declaration and accompanying attachments (if any),
and, to the best of his or her knowledge and belief, this Declaration and any attachments which
purport to be part of this Declaration, are true, correct, and complete.
Dated this th day of , 20 .
Respectfully Submitted, | ||||||
(Name of Substantial Equity Holder) | ||||||
By: | ||||||
Name: | ||||||
Address: | ||||||
Phone: | ||||||
Fax: | ||||||
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