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Shkreli's Bankrupt Drug Company Gets Offer From Hedge Fund

  • Hedge Fund Black Horse Capital proposes putting up $10 million
  • Deal depends on limiting indicted former CEO's voting power
Martin Shkreli smiles during a House Committee on Oversight and Government Reform hearing on prescription drug prices in Washington, D.C., on Feb. 4.

Martin Shkreli smiles during a House Committee on Oversight and Government Reform hearing on prescription drug prices in Washington, D.C., on Feb. 4.

Photographer: Pete Marovich/Bloomberg
Updated on

KaloBios Pharmaceuticals Inc., the drug company that plunged into bankruptcy after the arrest of its former Chief Executive Officer Martin Shkreli, is getting some help for its plan to buy a treatment for Chagas disease.

Hedge fund Black Horse Capital LP offered to buy at least 40 percent of the company for $10 million on the condition that Shkreli holds no more than 20 percent of KaloBios’s voting shares, according to a filing Thursday in Delaware bankruptcy court.