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Bankrupt PhaseBio Wins Loan, Blackstone-Backed Company Offer Fails

Oct. 26, 2022, 4:51 PM

PhaseBio Pharmaceuticals Inc. won temporary court permission to borrow $15 million from a lender to help finance its bankruptcy, fending off a competing offer from a Blackstone-backed company that wants to seize the cardiovascular drugmaker’s main business.

Judge Laurie Silverstein of the US Bankruptcy Court for the District of Delaware, in approving JMB Capital Partners’ loan, expressed concerns that the amount includes $9.1 million that PhaseBio already owed to JMB prior to declaring bankruptcy.

But PhaseBio needs the loan to continue operating, the judge said, adding that it can be challenged later. “I’m not prepared to shut this debtor down ...