Savient Pharma Enters Agreement On Use Of Cash Collateral - Quick Facts

(RTTNews) - Savient Pharmaceuticals, Inc. (SVNT) said that an agreement in principle was reached by and among Savient, the Official Committee of Unsecured Creditors appointed in Savient's Chapter 11 case or the "UCC" and the Unofficial Committee of Senior Secured Noteholders, whose members hold nearly 90% of Savient's senior secured notes. Pursuant to the agreement, the UCC is expected to withdraw its objection and consent to entry of a final order authorizing Savient's continued use of cash collateral by the U.S. Bankruptcy Court for the District of Delaware.

The parties expect submitting a proposed Final Cash Collateral Order for consideration and approval by the Court on or before the hearing to consider the Final Cash Collateral Order, currently slated to take place on December 13, 2013. If entered by the Court, the proposed Final Cash Collateral Order would provide for the distribution of proceeds from the sale of all or substantially all of Savient's assets and of additional amounts of cash collateral to the Secured Noteholders promptly after the Sale closing. The deal further contemplates that the UCC would waive its rights to challenge the Secured Noteholders' liens and claims subject to the implementation of a global settlement between Savient, the UCC and the Unofficial Committee.

The proposed settlement is likely to include following the principal terms, but may be amended or modified by agreement of the parties: 1.775 million cash would be used to fund distributions to unsecured creditors under a confirmed plan of reorganization or liquidation and Court-approved fees and expenses of the UCC's professionals; $100,000 in additional cash would be used to pay the fees and expenses of the indenture trustee for Savient's convertible notes; 100% of any proceeds received by Savient from a certain pending litigation with a major distribution customer would be used to fund distributions to unsecured creditors pursuant to a confirmed Plan.