Isolagen secures $500,417 in bridge financing, eyes DIP loan, possible bankruptcy filing

By Caroline Salls

Pittsburgh, May 6 - Isolagen, Inc. has secured $500,417 in bridge financing through secured promissory note and security agreements with eight lenders to allow it to continue to seek debtor-in-possession financing in connection with a possible bankruptcy filing.

If the company does obtain a commitment for DIP financing, the noteholders will have the right to exchange their notes into that DIP financing on a dollar-for-dollar basis.

The notes will bear interest at a rate of 20% and will mature on the earlier of June 20 or the date of the bankruptcy filing.

To secure the repayment of the notes, the company granted the noteholders a security interest and lien on its 57% equity interest in Agera Laboratories, Inc.

If it can secure DIP financing, Isolagen said it is likely that it will file for bankruptcy.

According to the release, if the company is unable to secure DIP financing, it will most likely cease operations and possibly file Chapter 7 bankruptcy.

In addition, Isolagen said the NYSE Amex LLC has halted trading in its common stock, and the exchange intends to delist the stock.

The company said it intends to apply to have its common stock quoted on the OTC Bulletin Board as soon as possible after the delisting.

Isolagen is based in Exton, Pa., and specializes in autologous cellular therapies for soft and hard tissue regeneration.

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