Redx Pharma’s transition from administration
back to trading on AIM is an unprecedented move for a UK
The UK-based drug R&D company was declared insolvent in
May after missing a repayment deadline for a £2 million
($2.62 million) secured loan from Liverpool City Council dating
It was put into the care of joint administrators FRP
Advisory shortly after, and sold off one of its units to US
pharmaceutical company Loxo for $40 million to clear its
liabilities. Its shares resumed trading on AIM’s
junior market on November 6.
It’s unusual for a company that enters
administration proceedings to emerge relatively unscathed from
them: as a matter of principle, most companies are generally
insolvent to the point where they will eventually have to fold.
Challenges for publicly listed companies are greater.
"Market rules, unsurprisingly, provide for the suspension