Radient Pharmaceuticals gets forbearance on preferreds, notes defaults

Investors exercise warrants, company agrees not to file for bankruptcy

By Devika Patel

Knoxville, Tenn., May 21 - Radient Pharmaceuticals Corp. has negotiated a forbearance agreement with its investors, according to an 8-K filed Monday with the Securities and Exchange Commission. The investors, who hold about $14 million of notes and redeemable preferred shares, had previously demanded repayment, which the company has been unable to pay.

On May 17, holders exercised $150,000 of the company's series A warrants. The proceeds of this exercise will be used to keep the company's Form S-1 registration statement effective. As a condition for the exercise, the company also agreed to refrain from filing for reorganization under Chapter 11 or to liquidate under Chapter 7 until Aug. 31, 2012.

Based in Tustin, Calif., Radient is a developer and marketer of In Vitro Diagnostic Onko-Sure cancer tests.

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