KaloBios Files For Bankruptcy

(RTTNews) - KaloBios Pharmaceuticals Inc. (KBIO) filed for Chapter 11 reorganization on Tuesday, according to a statement on the website of the U.S. Bankruptcy Court in Wilmington, Delaware. The South San Francisco, California-based company plans to use the bankruptcy to buy some time to implement its restructuring plans.

On December 28, 2015, the company submitted a request to Nasdaq requesting an appeal of Nasdaq's decision to delist the Company's securities. A hearing on the Company's appeal has been scheduled for February 25, 2016.

On December 18, 2015, the company received a letter from the Nasdaq Listing Qualification Staff advising the Company that Nasdaq determined to delist the Company's securities pursuant to its discretionary authority under Nasdaq Listing Rule 5101.

Nasdaq's letter to the Company cited a number of reasons for their decision, including the recent criminal indictment and arrest of Martin Shkreli, the Company's controlling shareholder, former Chairman and former Chief Executive Officer, based on allegations of securities fraud, among other things, as well as the arrest and indictment of Evan Greebel, the Company's former outside counsel, based on similar allegations, and a civil complaint from the U.S. Securities and Exchange Commission filed against Shkreli and Greebel based on similar allegations.

Nasdaq cited an additional basis for delisting based on the Company non-compliance with the filing requirements forth in the Nasdaq's Listing Rule because it has not filed its Quarterly Report on Form 10-Q for the period ended September 30, 2015.