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Revenue from patent sale is largest component in Orckit's capital restructuring deal with Hudson

As part of a corporate recapitalization, Orckit has sold its patents to Hudson Bay Capital Management for $5 million. In addition, Hudson purchased 13.3% of Orckit's shares for $2.5 million, and lent Orckit $500,000, secured by Orckit-Corrigent. Orckit will use $5 million to repay its existing debt, and $3 million to finance operations.
Today's deal comes nine months after Orckit reached a debt repayment settlement with its creditors. At the time, its outstanding debt was approximately $30 million, yet Orckit's sales performance remained poor and so it could not pay the $25 million due.
Prior to the Hudson deal today, the company had $1.5 million in cash, and $15 million in debt due in fifteen months.
The sale of the patents is subject to approval by the Office of the Chief Scientist.