Navidea Biopharmaceuticals - Chapter 11 Plan

Navidea Biopharmaceuticals’ Subchapter V plan proposes a restructuring funded by sale consideration from a marketing process targeting a section 363 sale or NOL-preserving sponsorship, supported by a $1.6 million DIP facility from a majority shareholder.

Plan Terms

Overview

Navidea Biopharmaceuticals, Inc. (the “Debtor”) filed a Plan of Reorganization (the “Plan”) to restructure its debts, which is to be funded through “Sale Consideration” derived from a marketing process.

DIP Financing

To fund the Chapter 11 cases, the Debtor secured a superpriority priming debtor-in-possession credit facility (the “DIP Facility”) from Mr. Scott (the “DIP Lender”).
- Facility Amount: While the initial motion sought $940,000, the facility was increased to $1.6 million pursuant to a settlement with a stockholder and the Final DIP Order entered on Nov. 7, 2025.
- Collateral: The DIP Facility is secured by a first-priority perfected senior priming lien on substantially all of the Debtor’s assets.

Settlement and Investigation

The Debtor reached a global resolution with a stockholder regarding the Final DIP Order and the Chapter 11 cases generally. Key terms of the resolution include:
- Withdrawal of Motions: The stockholder withdrew their Motion to Dismiss with prejudice, and the Debtor withdrew its NOL Motion without prejudice.
- Trustee Investigation: The Subchapter V Trustee’s powers were expanded under section 1183(b)(2) to conduct an investigation into any avoidance actions or other claims assertable against Mr. Scott (the “Investigation”).
  - The deadline for the Subchapter V Trustee to file a report regarding the Investigation is Jan. 5, 2026.

Sale Process

The Debtor initiated a court-supervised marketing process to explore strategic alternatives, which may result in:
- A sale of assets under section 363 of the Bankruptcy Code; or
- A “Plan Transaction,” whereby a Plan Sponsor funds distributions and ongoing operations, thereby preserving the value of the Debtor’s net operating losses (NOLs).
The Sale Process is governed by the following timeline:
- Bid Deadline: Jan. 20, 2026, at 4:00 p.m. (ET).
- Auction: Jan. 22, 2026, at 10:00 a.m. (ET).
- Objection Deadline: Jan. 27, 2026, at 12:00 p.m. (ET).
- Sale Hearing: Jan. 29, 2026, at 2:30 p.m. (ET).

Releases

The Plan provides for broad releases of the “Released Parties” by the Debtor and its Estate regarding claims arising from the restructuring efforts, the Chapter 11 cases, and related transactions.
If the Plan is confirmed under section 1191(b) of the Bankruptcy Code, the Debtor shall be considered a Released Party only upon the applicable Last Distribution Date.