Angiotech reorganizes for solid quarter; starts balance sheet anew

By Lisa Kerner

Charlotte, N.C., Aug 11 - Angiotech Pharmaceuticals, Inc. reported relatively solid results in the second quarter, said chief financial officer K. Thomas Bailey during the company's second-quarter earnings call on Thursday.

Bailey explained that it is challenging to compare Angiotech's results from period to period now that the company has adopted fresh-start accounting as of May 1, effectively starting over with a new balance sheet after exiting its Companies' Creditors Arrangement Act reorganization in July.

The CCAA process eliminated $250 million of 7¾% senior subordinated notes due in 2014 and $16 million of related interest obligations in exchange for new common shares.

In July, the company amended its revolving credit facility with Wells Fargo, which provided the company with $5 million of additional borrowing availability, according to a company news release.

At June 30, Angiotech had $21.6 million of cash and cash equivalents.

The company reported a net loss of $14.2 million for the two months ended June 30 under the new accounting system.

Angiotech is a Vancouver, B.C., specialty pharmaceutical and medical device company.

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