Daily News: December 13, 2012

Silver Point Commits $85MM in DIP Financing to K-V Pharmaceutical

K-V Pharmaceutical Company announced that it has received a commitment from lenders led by an affiliate of Silver Point Finance for $85 million in senior secured post-petition debtor-in-possession (DIP) financing. The DIP lenders consist of affiliates or funds of Silver Point Finance, Whitebox Advisors and Pioneer Investment Management.

The company intends to use the DIP financing to satisfy the terms of its recently filed settlement agreement with Hologic, provide additional financial flexibility during the pendency of the company’s Chapter 11 proceeding and fund certain payments under a proposed reorganization plan.

The new DIP financing, the Hologic Settlement and the reorganization plan (and related disclosure statement) are subject to approval of the U.S. Bankruptcy Court for the Southern District of New York.

The Hologic Settlement confirms K-V’s continued ownership of its product Makena, will resolve all bankruptcy-related disputes between K-V and Hologic and provides for mutual releases of all claims between the parties.

Under the proposed reorganization plan, K-V expects to emerge from Chapter 11 with its entire product portfolio, including Makena, Clindesse, Gynazole-1 and Evamist. The company has provided and is committed to continue to provide its women’s health care products without interruption to meet the needs of the health care providers and patients it serves.

Prior to the funding of the DIP financing facility, K-V intends to file with the bankruptcy court a proposed reorganization plan, a related disclosure statement and a plan support agreement (PSA) with an ad hoc group of senior secured noteholders. The principal terms of the proposed reorganization plan are contained in a plan term sheet filed with the motion to approve the filed DIP financing.

K-V and certain of its affiliates commenced cases to reorganize under Chapter 11 of the U.S. Bankruptcy Code on August 4, 2012. Willkie Farr & Gallagher serves as bankruptcy counsel to K-V, and Jefferies & Co. as financial advisor and investment banker.

K-V Pharmaceutical Company is a specialty branded pharmaceutical company with a primary focus in the area of women’s healthcare.

Previously on abfjournal.com:

Healthcare, Medical Bankruptcies Surpass Other Industries YTD, Wednesday, August 08, 2012