Eiger BioPharmaceuticals, Inc., a biotech firm specializing in biological products, has announced the completion of its Chapter 11 bankruptcy process. The company's restructuring plan became effective on Monday, marking the end of a significant phase in its efforts to address financial challenges.
The United States Bankruptcy Court for the Northern District of Texas confirmed Eiger's Fifth Amended Joint Plan of Liquidation on September 5, 2024. This plan outlined the company's strategy for satisfying creditor claims and distributing any remaining assets. As part of the plan, all shares of Eiger's common stock were cancelled as of Monday, with obligations under these shares being fully discharged.
Shareholders of the cancelled stock are eligible to receive their portion of the Existing Equity Interest Recovery Pool (NASDAQ:POOL), if available. The specifics of this distribution were not detailed in the announcement.
Additionally, Eiger BioPharmaceuticals intends to file a Form 15 with the Securities and Exchange Commission to suspend its reporting obligations. This suspension will include the cessation of periodic filings such as Forms 10-K, 10-Q, and 8-K, which are typically required for publicly traded companies.
Prior to the bankruptcy filing on April 1, 2024, Eiger's common stock was removed from trading on The Nasdaq Stock Market LLC and has since been trading on the OTC Pink Marketplace under the symbol "EIGRQ."
InvestingPro Insights
Recent InvestingPro data sheds light on Eiger BioPharmaceuticals' financial situation leading up to its bankruptcy. The company's market capitalization stood at a mere $12.59 million, reflecting its financial distress. Despite a significant revenue growth of 41.06% in Q4 2023, Eiger's operating income margin was deeply negative at -455.12%, indicating severe operational challenges.
InvestingPro Tips highlight that Eiger was "quickly burning through cash" and its "short term obligations exceed liquid assets," factors that likely contributed to the bankruptcy filing. The company's stock price has been "quite volatile," with a remarkable 511.51% increase over the past six months, possibly reflecting speculative trading amid bankruptcy proceedings.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Eiger BioPharmaceuticals, providing deeper insights into the company's financial health and market position.
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