Synergy Pharmaceuticals Inc.
Litigation Trust - Beneficiary Information
On April 25, 2019, Synergy Pharmaceuticals Inc. received Bankruptcy Court approval of its wind down Chapter 11 plan (the Plan) that provides creditors with recoveries from a $195 million sale of the company’s drug treatments.
The Plan provided, as of May 1, 2019, the creation of a Litigation Trust and John Noble was named as the Litigation Trustee. Pursuant to the Litigation Trust Agreement, certain assets were transferred to the Litigation Trust and the distributions therefrom to Beneficiaries, in accordance with the Litigation Trust Agreement, the Plan and the Court’s Confirmation Order. Beneficiaries are defined in the Litigation Trust Agreement as “beneficiaries in interests in the Litigation Trust under the Plan, including holders of Allowed General Unsecured Claims, Allowed 510(b) Claims and Allowed Interests.”
What does this mean for unsecured creditors or stockholders of Synergy Pharmaceuticals Inc.?
The Litigation Trust provides that record holders of trust interests shall be recorded and set forth in a register maintained by the Litigation Trustee expressly for such purpose. Such Register shall be updated from time to time as Disputed Claims become Allowed Claims. On the Effective Date, and periodically thereafter but in any event, not less than monthly), the Liquidating Debtor shall provide the Litigation Trustee with a file or database in searchable electronic format and information provided in the Litigation Trust.
When will Claims be paid?
The Plan provides that payment on may be made to Holders of Allowed Claims on the Distribution Date, which includes the Initial Distribution Date and Periodic Distribution Dates, as applicable. Under the Plan, each Holder of Allowed Class 8 Interests received its Pro Rata Share of up to $1.375 million in Cash from the CRG-ESH Settlement Fund on or about July 2, 2019.
What should I do if I believe that I am a beneficiary of the Litigation Trust?
You should visit the claims register maintained in the bankruptcy cases. Relevant information may be found at https://cases.primeclerk.com/Synergy/Home-ClaimInfo
Should you continue to have any questions or concerns you may call the Litigation Trust Claim Holder Hotline at 302.888.6883 or synergy@morrisjames.com.
