Accentia Biopharmaceuticals' amended plan gets court confirmation

By Lisa Kerner

Charlotte, N.C., Oct. 27 - Accentia Biopharmaceuticals, Inc.'s amended plan of reorganization was confirmed by the U.S. Bankruptcy Court for the Middle District of Florida on Wednesday, according to an attorney familiar with the case.

As previously reported, under the amended plan, holders of 2006 debenture secured claims will receive a new 18-month 8½% secured debenture rather than have their claims automatically converted into shares of reorganized Accentia common stock or exchanged for Biovest common stock.

If the average volume weighted average price for Biovest's common stock for the 10 consecutive trading days ending on the trading day immediately preceding the maturity date is below $0.75, the maturity date will automatically be extended for an additional 12 months.

Holders of the new debentures may elect to convert their portion of the debentures into shares of reorganized Accentia common stock or exchange them for Biovest stock prior to their maturity.

Also, under the amended plan, holders of administrative expense claims will have the option of being paid in full in cash or through a conversion of their claim into shares of reorganized Accentia common stock.

Creditor treatment

Creditor treatment under Accentia's amended plan now includes:

• Holders of administrative expense claims will have the option of being paid in full in cash or through a conversion of their claim into shares of reorganized Accentia common stock;

• Holders of priority tax claims and priority claims will be paid in full in cash;

• Holders of secured claims and other claims of Laurus/Valens will have an $8.8 million secured claim evidenced by 8½% two-year term notes, which can be converted into shares of common stock in the reorganized company;

• Holders of Southwest Bank secured claims will receive a 40-month 6% promissory note if they do not make a common stock conversion election;

• Holders of McKesson secured claims will receive a 40-month 5% promissory note if they do not make a common stock conversion election;

• 2006 debenture holders' secured claims will receive a new 8½% 18-month secured debenture;

• Holders of 2008 debentures will receive a 36-month 8½% promissory note if they do not make a common stock conversion election;

• Holders of other secured claims will receive a 40-month 5% promissory note if they do not make a common stock conversion election;

• Holders of 2007 debentures will receive a share of a promissory note with an automatic conversion feature;

• Holders of unsecured claims will have three treatment options. Under option A, these creditors would be paid in full in cash; under option B, they would receive shares of reorganized Accentia common stock; and under option C, they would receive a new two-year convertible promissory note;

• Holders of convertible preferred stock can elect to either convert their shares into new common stock at a conversion rate of $2.67 per share or receive a new two-year convertible promissory note;

• Holders of subordinated securities claims will be paid in full in cash;

• Holders of equity interests will receive one share of new common stock for each existing share; and

• Holders of subsidiary equity interests will retain their interests, but will receive no distribution.

Accentia, a biopharmaceutical company based in Tampa, Fla., filed for bankruptcy on Nov. 10, 2008. Its Chapter 11 case number is 08-17795.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.