PhaseBio Pharmaceuticals, Inc.

PhaseBio is now in post-confirmation liquidation trust administration, with the Liquidation Trustee still preserving claim-review and litigation-removal rights after confirmation of the debtor’s combined disclosure statement and Chapter 11 plan. The case began on October 23, 2022, when PhaseBio filed Chapter 11 in Delaware after a liquidity collapse around its lead cardiovascular drug candidate, bentracimab, and an escalating dispute with SFJ Pharmaceuticals over development rights and control of the program. The debtor entered the case with only $589,135 of cash, about $9.1 million of funded debt, $36 million of trade debt, and a first-lien term loan secured by substantially all assets, while pursuing a sale-oriented path supported by a non-binding stalking horse proposal and proposed postpetition funding from JMB, as described in the Perkins first-day declarationDkt. 2.

The SFJ dispute was central to the filing posture. PhaseBio alleged that SFJ’s September 2022 Program Transfer Notice sought to take the bentracimab development program without additional consideration, and the debtor followed the petition with an adversary proceeding seeking recharacterization and declaratory relief against SFJ in the SFJ adversary complaintDkt. 1. The case then moved through a plan process rather than an operating reorganization; on June 26, 2024, the court approved the debtor’s First Amended Combined Disclosure Statement and Chapter 11 Plan on a final basis and confirmed that plan through the confirmation orderDkt. 1129.