Biotech Firm Achaogen Gets Confirmation of Liquidation Plan

Bankrupt biopharmaceutical company Achaogen Inc. won court approval of its Chapter 11 liquidation plan after selling its assets, giving creditors only a limited return on their claims.

“This was a much more challenging case than it first appeared,” Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware said Thursday during a video hearing that culminated in the plan’s approval.

The plan, filed jointly by Achaogen and the unsecured creditors committee, will be effective Friday, said Achaogen’s attorney, Erin N. Brady of Hogan Lovells US LLP.

Under the plan, pre- and post-bankruptcy secured lenders should recover ...