Vivus Inc., which filed for bankruptcy with plans to be acquired by Carl Icahn’s investment firm, received interim court approval to preserve $648 million in net operating losses that could be used to reduce future taxes, WSJ Pro Bankruptcy reported. The Campbell, Calif.-based maker of an obesity treatment and other drugs filed for bankruptcy on Tuesday after reaching a deal with IEH Biopharma LLC, an Icahn Enterprises LP subsidiary, on a debt-for-equity swap. Under the company’s pre-packaged plan, IEH would take full ownership of Vivus in return for canceling about $145 million of the company’s debt. Vivus said it has three drugs: Qsymia, for weight loss; Pancreaze, which treats a pancreatic disorder; and Stendra, which treats erectile dysfunction. The company yesterday asked the U.S. Bankruptcy Court in Wilmington, Del., for permission to limit trading of its shares in hopes of preserving the net operating losses as well as $12 million in tax credits. The potential tax breaks are “part of the fabric” of a proposed restructuring that will benefit several groups, Vivus said in court filings. Under the plan, general unsecured creditors, such as those providing goods and services, would be paid in full, court filings said. As of the date of the bankruptcy, they are owed about $27.5 million.
