Access Pharmaceuticals gets extension on notes, renegotiates other debt

By Sheri Kasprzak

New York, Sept. 9 - A troubled Access Pharmaceuticals, Inc. said it received an extension on its convertible notes previously due September 2008, one part of several negotiations the company is working on to provide cash to cover its operations after this month.

Access revealed in a statement Friday that it has enough cash for operations through September and should be able to obtain credit or equity facilities in the short term to cover its operating requirements until it can sell one of its business units.

Holders of its convertible notes due Sept. 13, 2008 have agreed to extend the maturity of the notes to Sept. 13, 2010.

Also, holders of the convertible debentures due Sept. 13 and convertible debentures due Sept. 13, 2008, agreed to convert the interest - $1,042,000 - due on Sept. 13 into common shares or delay the interest payment for a year.

The company has made advances on its $15 million equity line received in April from Cornell Capital Partners, LP to provide for operating cash while it continues to renegotiate the terms of convertible notes due Sept. 13, 2005.

Access, according to the statement, is in the process of finding buyers for some of its business units that are not deemed part of its long-term strategy.

"The sale of these units could generate sufficient funds to satisfy debt coverage and cash flow needs for the near term," said the statement.

Based in Dallas, Access is a pharmaceutical company focused on the development of novel low-development risk product candidates and longer-term products, including a treatment for cancer.

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