Brooklyn

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 per cent of the company for US$10 million on the condition that Shkreli holds no more than 20 per cent of KaloBios' voting shares, according to a filing on Thursday in Delaware bankruptcy court. Shkreli had owned about 50 per cent of the stock before the bankruptcy. At least a substantial portion of his stake was used to secure his US$5 million bail after he was charged with securities fraud in December.