KaloBios Pharmaceuticals Inc., the drug company that plunged into bankruptcy after the arrest of its former Chief Executive Officer Martin Shkreli, is getting some help for its plan to buy a treatment for Chagas disease, Bloomberg News reported on Friday. Hedge fund Black Horse Capital LP offered to buy at least 40 percent of the company for $10 million on the condition that Shkreli holds no more than 20 percent of KaloBios’s voting shares, according to a bankruptcy court filing on Thursday. Shkreli had owned about 50 percent of the stock before the bankruptcy. At least a substantial portion of his stake was used to secure his $5 million bail after he was charged with securities fraud in December.
The proposal, which must be approved by a judge, would allow KaloBios to buy rights to the drug benznidazole from Savant Neglected Diseases LLC. Under conditions of the deal, KaloBios must have $10 million in unencumbered cash when it exits bankruptcy protection.