$85M Default Risk Keeps K-V Pharma Ch. 11 Plan On Schedule

Law360, New York (March 6, 2013, 3:07 PM EST) -- A New York bankruptcy judge on Wednesday refused to extend the timeline for K-V Pharmaceutical Co.’s reorganization plan, saying that prolonging the process would unnecessarily risk K-V’s default of an outstanding $85 million loan.

K-V’s creditors argued that Silver Point Capital LP, the largest senior lender, is trying to speed up the confirmation process to take advantage of increased sales of the company’s prenatal drug Makena after competitors were tied to a meningitis outbreak. The creditors had sought to delay hearings for the proposed Chapter 11...
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