Plan proposes to eliminate $44M senior debt and access approx $5.6M
in new financing to support seeking global approvals for lymphoma vaccine
TAMPA, Fla. & MINNEAPOLIS--(BUSINESS WIRE)--Mar. 7, 2013--
Biovest International, Inc. (OTCQB:BVTI) today reported that the Company
has filed a petition for protection under Chapter 11 of the U.S.
Bankruptcy Code and a Plan of Reorganization (the “Plan”) seeking to
implement a restructuring of its balance sheet that would eliminate
approximately $44 million in senior secured debt held by Laurus/Valens
Funds and Corp Real, LLC (the “senior secured debt”) while also
providing up to approximately $5.6 million in new operating funding.
Subject to the Plan becoming effective, Biovest expects the Plan would
significantly strengthen its balance sheet and support ongoing
strategies to commercialize its BiovaxID™ personalized cancer
vaccine, including facilitating ongoing partnering/licensing
initiatives, as well as enhancing the opportunity to secure new
contracts establishing its hollow fiber bioreactors as a novel cell
culture platform for viral vaccine production.
During this reorganization process, Biovest plans to continue its
operations without interruption, including advancing its regulatory
strategy seeking approvals for BiovaxID in the European Union and
Canada for the treatment of follicular non-Hodgkin’s lymphoma. The
Company plans to file these formal marketing applications following
completion of its reorganization with regulatory decisions anticipated
in 2014. If approved, BiovaxID would be the first cancer vaccine
available for lymphoma patients. Biovest will also continue to service
its cell culture and instruments clients from its Minneapolis facility
Based on filings made to the Bankruptcy Court, Biovest will seek access
for up to approximately $5.6 million in new funding being provided by
Biovest’s senior secured lenders. The Plan also proposes that
approximately $44 million of Biovest’s senior secured debt, which
includes the new funding, would be converted into common stock on the
effective date of the Plan, thereby eliminating the Company’s senior
secured debt upon exit from bankruptcy.
Biovest’s largest senior secured lenders have indicated support for the
Plan, and the Company expects to complete the restructuring and emerge
from Chapter 11 by mid-2013. The reorganization filing was made in the
U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, and Biovest’s bankruptcy counsel is the law firm of Stichter,
Riedel, Blain & Prosser P.A.
All terms proposed in the Plan, as well as in subsequent related
filings, will be subject to acceptance by the Bankruptcy Court and will
ultimately require final approval by the Bankruptcy Court in order to
About Biovest International, Inc.
Biovest International, Inc. develops active immunotherapies (cancer
vaccines) which treat and diminish the aggressiveness of B-cell
non-Hodgkin’s lymphoma, a cancer of the immune system. The Company’s
lead personalized cancer vaccine product candidate, BiovaxID™,
has been evaluated in three clinical trials conducted in collaboration
with the U.S. National Cancer Institute (NCI) demonstrating that BiovaxID
increases the duration of cancer remission following chemotherapy
and induces immune responses which correlate highly with long-term
survival. Biovest is currently in the process of pursuing European and
Canadian marketing approvals for BiovaxID.
Headquartered in Tampa, Florida with its bio-manufacturing facility
based in Minneapolis, Minnesota, Biovest is publicly-traded on the
OTCQB™ Market with the stock-ticker symbol “BVTI”.
For further information, please visit: http://www.Biovest.com
Statements in this press release that are not strictly historical in
nature constitute "forward-looking statements.” Such
statements include, but are not limited to, statements about Biovest and
its petition in Chapter 11 reorganization and proposed Plan of
Reorganization, product candidate, BiovaxID™ and any other statements
relating to products, product candidates, product development programs,
the FDA, the EMA, Health Canada or clinical study process including the
commencement, process, or completion of clinical trials or the
regulatory process. Such statements may include, without
limitation, statements with respect to the Company's plans, objectives,
expectations and intentions, and other statements identified by words
such as “proposed”, “proposes”, “seeking”, "may," "could," "would,"
"should," "believes," "expects," "anticipates," "estimates," "intends,"
"plans," or similar expressions. In particular (and without limitation),
statements regarding the timing of anticipated filing of a Marketing
Authorization Application for BiovaxID with the EMA or a New Drug
Submission for BiovaxID with Health Canada, pre-filing meetings with the
FDA or other jurisdictions and/or commercial plans reflect current
expectations but are subject to inherent risks of delay in compilation
and finalization of all components of the licensing application. Such
forward-looking statements involve known and unknown risks,
uncertainties, and other factors that may cause the actual results of
Biovest to be materially different from historical results or from any
results expressed or implied by such forward-looking statements. These
factors include, but are not limited to, risks and uncertainties related
to the progress, timing, cost, and results of clinical trials and
product development programs; difficulties or delays in obtaining
regulatory approval for product candidates; competition from other
pharmaceutical or biotechnology companies; and the additional risks
discussed in filings with the Securities and Exchange Commission. All
forward-looking statements are qualified in their entirety by this
cautionary statement, and Biovest undertakes no obligation to revise or
update this news release to reflect events or circumstances after the
date hereof. The product names used in this statement are for
identification purposes only. All trademarks and registered
trademarks are the property of their respective owners.
Source: Biovest International, Inc.
Biovest International, Inc.:
Vice President, Strategic Planning & Capital