ST. LOUIS, Dec. 28, 2012 /PRNewswire/ -- K-V Pharmaceutical Company ("K-V" or "the Company") today announced that the U. S. Bankruptcy Court for the Southern District of New York, the Honorable Judge Allan L. Gropper presiding, approved the Company's settlement agreement with Hologic, Inc. ("Hologic Settlement"), and authorized the Company to enter into an $85 million debtor-in-possession ("DIP") financing to, among other things, fund the settlement. "The resolution of the Hologic litigation is a major milestone in our restructuring. Now that it is resolved, K-V can focus on completing all other necessary steps for confirmation of a plan of reorganization and timely emergence from Chapter 11," said K-V President and CEO Greg Divis. "We are committed to our core women's health care business and continue to work closely with our customers to advance the care of the patients we serve." The Hologic Settlement resolves all disputes between K-V and Hologic related to Makena®, confirms K-V's ownership of Makena® and allows the Company to move forward with their efforts to pursue a plan of reorganization based upon Makena®. The $85 million DIP financing facility will be used to satisfy the terms of the Hologic Settlement, provide additional financial flexibility during the pendency of the Company's Chapter 11 proceeding and fund certain payments under the proposed plan of reorganization. The DIP financing contains various bankruptcy milestones including a requirement that the Company file a proposed plan of reorganization in January. The proposed plan, which has the support of over 75% of the Company's prepetition senior secured noteholders based on principal amount held, is intended to maximize recoveries to stakeholders of the Company. K-V and certain of its affiliates commenced cases to reorganize under Chapter 11 of the U.S. Bankruptcy Code on August 4, 2012. The Chapter 11 cases are being jointly administered under case number 12-13346. The DIP Lenders consist of affiliates or funds of each of Silver Point Finance, LLC, Whitebox Advisors, LLC, and Pioneer Investment Management, Inc.
K-V Pharmaceutical Company (NYSE:KV.A) is trading at unusually high volume Friday with 3.6 million shares changing hands. It is currently at four times its average daily volume and trading down 93 cents (-35.6%).
K-V Pharmaceutical Company (NYSE:KV.A) is trading at unusually high volume Wednesday with 11.7 million shares changing hands. It is currently at 4.2 times its average daily volume and trading down $2.25 (-31.6%).