Angiotech Pharmaceuticals Inc. (ANPI, Financial) filed Quarterly Report for the period ended 2011-06-30.
Angiotech Pharmaceuticals Inc. has a market cap of $79.17 million; its shares were traded at around $0 .
On April 4, 2011, a meeting was held for creditors whose obligations were compromised under the CCAA Plan (the Affected Creditors) to vote for or against the resolution approving the CCAA Plan. The CCAA Plan was approved by 100% of the Affected Creditors, whose votes were registered and sanctioned by the order of the Canadian Court on April 6, 2011. This order was subsequently recognized by the U.S. Court on April 7, 2011. Affected Creditors who did not file a proof of claim in accordance with the procedure for the adjudication, resolution and determination of claims established by the order of the Canadian Court on February 17, 2011 (the Claims Procedure Order) had their claims forever barred and extinguished and were not permitted to receive distributions under the CCAA Plan. In accordance with the terms of the CCAA Plan, the maximum amount of distributions that were permitted to be made to Affected Creditors, excluding holders of the Subordinated Notes, was $4.0 million. Under the terms of the CCAA Plan, Affected Creditors, other than the Subordinated Noteholders, with claims less than or equal to $5,000 were deemed to have elected to receive cash in an amount equal to their claims in full satisfaction of their claims. Affected Creditors, other than Subordinated Noteholders, with claims greater than $5,000 but less than or equal to $31,250 could elect to receive $5,000 in satisfaction of their claims. In addition, Affected Creditors, other than the Subordinated Noteholders, with claims greater than $31,250 could elect to receive $0.16 on the dollar up to a maximum of $24,000 in satisfaction of their claims in lieu of receiving new common shares to be issued and outstanding upon completion of Recapitalization Transaction. The amount of the claims in respect of the Subordinated Notes only included the principal and accrued interest amounts, owing directly by Angiotech under the SSN Indenture and by the other Angiotech Entities under the guarantees executed by such other Angiotech Entities in respect of the Subordinated Notes, up to the date of the Initial Order, January 28, 2011.
On May 12, 2011, we entered into a new credit facility (as amended on July 14, 2011, the Exit Facility) with Wells Fargo Capital Finance, LLC (Wells Fargo) which provide for potential borrowings up to $28 million. The Exit Facility was used to effectively repay the $22 million of borrowings outstanding under
our existing debtor-in-possession credit facility (the DIP Facility) with Wells Fargo as at May 12, 2011, which was net of $3 million of cash remitted as collateral for the secured letters of credit. The DIP Facility was used to support working capital needs and general corporate expenses during the implementation of the CCAA Plan and permitted us to make revolving credit loans and provide letters of credit in an aggregate principal amount (including the face amount of any letters of credit) of up to $28.0 million. As at the Plan Implementation Date, the DIP Facility was terminated in connection with terms of the CCAA Plan. We incurred approximately $1.5 million in fees to obtain and complete the Exit Facility. Refer to the Liquidity and Capital Resources section for more information.
The going concern enterprise value of the Successor Companys operations for purposes of fresh start accounting was estimated to be within a range of $450 million to $580 million, excluding the value of cash and cash equivalents and short term investments. Management determined that $517 million was the best estimate of the Successor Companys enterprise value.
Property, plant and equipment were recorded at their estimated fair value of $47.7 million based on the highest and best use of these assets. Assets held for sale were recorded at $2.6 million, which represents their fair values less costs to sell. The following approaches were applied to determine fair value:
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Angiotech Pharmaceuticals Inc. has a market cap of $79.17 million; its shares were traded at around $0 .
Highlight of Business Operations:
Over the past several years, revenues in our Pharmaceutical Technologies segment, specifically our royalties derived from sales of TAXUS by BSC, have experienced significant declines. These declines led to significant constraints on our liquidity, working capital and capital resources, which in turn adversely impacted our ability to continue to support our business initiatives and service our debt obligations. As a result, after exploring a range of financial and strategic alternatives to address these declines in our royalty revenue and negotiations with a significant percentage of the holders (the Consenting Noteholders) of our outstanding indebtedness, on May 12, 2011 (the Plan Implementation Date or the Effective Date), we implemented a transaction that eliminated $250 million of our 7.75% Senior Subordinated Notes due 2014 (the Subordinated Notes) and $16 million of related accrued interest obligations in exchange for new common shares of the Company (the Recapitalization Transaction). The Recapitalization Transaction is expected to significantly improve our credit ratios, liquidity and financial flexibility.On April 4, 2011, a meeting was held for creditors whose obligations were compromised under the CCAA Plan (the Affected Creditors) to vote for or against the resolution approving the CCAA Plan. The CCAA Plan was approved by 100% of the Affected Creditors, whose votes were registered and sanctioned by the order of the Canadian Court on April 6, 2011. This order was subsequently recognized by the U.S. Court on April 7, 2011. Affected Creditors who did not file a proof of claim in accordance with the procedure for the adjudication, resolution and determination of claims established by the order of the Canadian Court on February 17, 2011 (the Claims Procedure Order) had their claims forever barred and extinguished and were not permitted to receive distributions under the CCAA Plan. In accordance with the terms of the CCAA Plan, the maximum amount of distributions that were permitted to be made to Affected Creditors, excluding holders of the Subordinated Notes, was $4.0 million. Under the terms of the CCAA Plan, Affected Creditors, other than the Subordinated Noteholders, with claims less than or equal to $5,000 were deemed to have elected to receive cash in an amount equal to their claims in full satisfaction of their claims. Affected Creditors, other than Subordinated Noteholders, with claims greater than $5,000 but less than or equal to $31,250 could elect to receive $5,000 in satisfaction of their claims. In addition, Affected Creditors, other than the Subordinated Noteholders, with claims greater than $31,250 could elect to receive $0.16 on the dollar up to a maximum of $24,000 in satisfaction of their claims in lieu of receiving new common shares to be issued and outstanding upon completion of Recapitalization Transaction. The amount of the claims in respect of the Subordinated Notes only included the principal and accrued interest amounts, owing directly by Angiotech under the SSN Indenture and by the other Angiotech Entities under the guarantees executed by such other Angiotech Entities in respect of the Subordinated Notes, up to the date of the Initial Order, January 28, 2011.
On May 12, 2011, we entered into a new credit facility (as amended on July 14, 2011, the Exit Facility) with Wells Fargo Capital Finance, LLC (Wells Fargo) which provide for potential borrowings up to $28 million. The Exit Facility was used to effectively repay the $22 million of borrowings outstanding under
our existing debtor-in-possession credit facility (the DIP Facility) with Wells Fargo as at May 12, 2011, which was net of $3 million of cash remitted as collateral for the secured letters of credit. The DIP Facility was used to support working capital needs and general corporate expenses during the implementation of the CCAA Plan and permitted us to make revolving credit loans and provide letters of credit in an aggregate principal amount (including the face amount of any letters of credit) of up to $28.0 million. As at the Plan Implementation Date, the DIP Facility was terminated in connection with terms of the CCAA Plan. We incurred approximately $1.5 million in fees to obtain and complete the Exit Facility. Refer to the Liquidity and Capital Resources section for more information.
The going concern enterprise value of the Successor Companys operations for purposes of fresh start accounting was estimated to be within a range of $450 million to $580 million, excluding the value of cash and cash equivalents and short term investments. Management determined that $517 million was the best estimate of the Successor Companys enterprise value.
Property, plant and equipment were recorded at their estimated fair value of $47.7 million based on the highest and best use of these assets. Assets held for sale were recorded at $2.6 million, which represents their fair values less costs to sell. The following approaches were applied to determine fair value:
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