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Angiotech amends CCAA plan, shifting allotment of some shares
By Angela McDaniels
Tacoma, Wash., April 1 - Angiotech Pharmaceuticals, Inc. filed an amended plan of arrangement with the Supreme Court of British Columbia in connection with its Companies' Creditors Arrangement Act case, according to a company news release.
Angiotech and 73% of the holders of its 7¾% senior subordinated notes due 2014 have a capitalization support agreement. The noteholders who entered into the agreement prior to Nov. 30 were promised an additional payment of 3.5% of the company's new common shares. Under the amended plan, these shares will be allocated pro rata to all affected creditors, including all of the 7¾% noteholders, based on the amount of their affected claims.
As a result, the noteholders will receive their pro rata share of up to 96% of the new common shares to be issued when the plan is implemented.
Also under the amended plan, the deadline for affected creditors (other than the noteholders) with claims greater than C$5,000 but less than or equal to C$31,250 to elect to receive C$5,000 in cash in satisfaction of their claims has been extended to 10 days after the sanctioning of the plan by the court.
Affected creditors (other than the noteholders) with claims greater than C$31,250 may now elect to receive cash, at C$0.16 on the dollar up to a maximum of C$24,000, in satisfaction of their claims in lieu of receiving new common shares.
The company said the extension will give creditors additional time to consider their options following a creditors' meeting to be held on April 4.
If the amended plan is approved by a majority of the affected creditors at the meeting, Angiotech will ask the court on April 6 to sanction the plan.
Angiotech, a Vancouver, B.C., specialty pharmaceutical and medical device company, received CCAA protection on Jan. 28. It filed for bankruptcy on Jan. 30 in the U.S. Bankruptcy Court for the District of Delaware, and the Chapter 15 case number is 11-10269.
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