4D Pharma - Case Update

We last wrote about the administration of AIM-listed 4D Pharma in May, when we reported that the group’s IP assets had been sold to South Korean company CJ Bioscience for approximately US $6 million.

Since the sale, joint administrators James Clark and Blair Nimmo of Interpath have ceased trading the business and have shifted their efforts to supporting the purchaser in the transfer of the IP and managing the termination of ongoing clinical trials, which must be done in accordance with regulatory standards and medical best-practice. They are working to recover surplus funds paid to clinical trial partners prior to the administration, and are otherwise managing an orderly wind-down of the business.

Armistice, the company’s secured creditor, which has received a distribution of US $5.3, is expected to receive a further distribution but to suffer a shortfall on the US $10.4 million that remains outstanding to it. Ordinary preferred creditors are expected to be repaid in full, while unsecured creditors will receive a dividend from the prescribed part only.

The administration is currently due to end on 23 June 2024, but the administrators have indicated that it may be necessary to seek an extension if remaining matters cannot be completed by that date.

Their progress report can be found HERE. They have been assisted by Shepherd Wedderburn, who provided general legal advice ahead of the administration, and Jones Day, who provided legal advice in relation to the sale.