KaloBios Looks to Restructure While Under Court Protection in Delaware

KaloBios Pharmaceuticals has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court.
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San Francisco-based bio-pharmaceutical company KaloBios Pharmaceuticals has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. In court papers, KaloBios indicated it intended to reorganize. On its petition, KaloBios reported $8.37 million in assets and $1.94 million in debt. The company's largest unsecured creditors include the University of Miami, Ernst & Young, and Catalent Pharma Solutions. In a Tuesday motion, the debtor sought permission to pay employee wages while in bankruptcy. Judge Laurie Selber Silverstein has yet to set any hearings in the case as of Wednesday morning Martin Shkreli, who has been arrested on securities fraud, led the company for a brief period after he invested in KaloBios in November. He left his position as CEO this month following his arrest at his Midtown Manhattan apartment. Shkreli resigned as CEO of Turing Pharmaceuticals, another privately held biotechnology company that he founded, after his arrest. The Deal's Andrew Hedlund reports from New York.