K-V class A and B common shares trade on OTCQB after NYSE suspension

By Caroline Salls

Pittsburgh, Aug. 8 - K-V Pharmaceutical Co.'s class A and class B common shares have begun trading on the OTCQB Marketplace, according to a company news release.

K-V said the transition to the OTCQB Marketplace comes after its class A and class B common shares were suspended, pending delisting, from the New York Stock Exchange as a result of the company's Aug. 4 Chapter 11 bankruptcy filing.

The shares are trading under the symbols KVPHA and KVPHB, respectively.

According to an 8-K filed Wednesday with the Securities and Exchange Commission, K-V's bankruptcy filing constituted an event of default and triggered the automatic and immediate acceleration of debt outstanding under its $225 million principal amount of 12% senior secured notes due 2015 and $200 million principal amount of 2.5% contingent convertible subordinated notes due 2033.

K-V said it believes that any efforts to enforce the acceleration are stayed under the Bankruptcy Code as a result of the Chapter 11 filing.

The company also said in the 8-K that it does not intend to appeal the NYSE's delisting decision.

KV, a St. Louis specialty pharmaceutical company, filed for bankruptcy on Aug. 4 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 12-13346.

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