KaloBios Pharmaceuticals Inc. has lined up $14 million in loans to see it through and out of bankruptcy, financing that could be paid off in the form of bargain-priced stock that would water down the holdings of Martin Shkreli, Dow Jones Daily Bankruptcy Review reported today. Nomis Bay Ltd. has joined Black Horse Capital LP in offering loans designed to fund a deal to get KaloBios back on its feet and soothe a sore spot — the company's association with Shkreli, who attained notoriety for hiking the price of a vital drug by 5,000 percent last year. KaloBios was on the point of being liquidated last November when Shkreli took control of it, driving up the stock price. About a month later, he was pushed out of KaloBios after his arrest on fraud charges unrelated to KaloBios. He remains one of the company's largest shareholders.
