Angiotech CCAA plan sanctioned by B.C. court; order recognized in U.S.

By Caroline Salls

Pittsburgh, April 7 - Angiotech Pharmaceuticals, Inc.'s Companies' Creditors Arrangement Act plan was sanctioned by the Supreme Court of British Columbia, and that order has been recognized by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Angiotech and 73% of the holders of its 7¾% senior subordinated notes due 2014 have a capitalization support agreement.

The noteholders who entered into the agreement before Nov. 30 were promised an additional payment of 3.5% of the company's new common shares.

Under the amended plan of arrangement filed last week, these shares will be allocated to all affected creditors, including all of the 7¾% noteholders, based on the amount of their affected claims.

As a result, the noteholders will receive their share of up to 96% of the new common shares to be issued when the plan is implemented.

Also under the amended plan, the deadline for affected creditors (other than the noteholders) with claims greater than C$5,000 but less than or equal to C$31,250 to elect to receive C$5,000 in cash in satisfaction of their claims has been extended to 10 days after the sanctioning of the plan by the court.

Affected creditors (other than the noteholders) with claims greater than C$31,250 may now elect to receive cash, at C$0.16 on the dollar up to a maximum of C$24,000, in satisfaction of their claims in lieu of receiving new common shares.

According to Wednesday's plan sanction recognition order, no assets, including cash, located in the United States as of April 1 will be used to pay affected claims under the CCAA plan.

Angiotech, a Vancouver, B.C., specialty pharmaceutical and medical device company, filed for bankruptcy on Jan. 30. The Chapter 15 case number is 11-10269.

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