K-V Pharmaceutical announced that its plan of reorganization is become effective and that it successfully emerged from Chapter 11 with significantly reduced debt and a $375 million recapitalization. Willkie Farr & Gallagher served as legal counsel. Jefferies served as financial advisor.

Pursuant to the plan, investors led by Capital Ventures International, Greywolf Capital, Kingdon Capital and Deutsche Bank (together with Silver Point Finance) and/or affiliates of each of the foregoing have provided the majority of funding of the company’s new $100 million credit facility, and $275 million rights offering and direct purchase of new common shares.

“As KV emerges from Chapter 11 today, we are a stronger, better capitalized, and more competitive company with a solid financial foundation for future growth,” said Greg Divis, CEO of KV. “We deeply appreciate the support from our new investors and partners as we continue to execute on advancing women’s health with our well-established portfolio of FDA-approved medications and focus, first and foremost, on our commitment to patients.”

KV’s existing senior secured notes will be paid in cash in full in accordance with the terms of the plan and general unsecured creditors will receive a pro rata share of $10.25 million. KV’s existing convertible subordinated noteholders will receive 7% of KV’s new common shares plus any shares purchased through the rights offering or direct purchase of shares. Under the plan, all existing preferred and common stock has been cancelled.

K-V Pharmaceutical Company is a specialty branded pharmaceutical company with a primary focus in the area of women’s healthcare.
Previously on abfjournal: K-V Pharmaceutical Receives Approval of DIP Loan, Settlement, January 3, 2013