K-V Pharmaceutical Use of Cash Collateral Approved
K-V Pharmaceutical Co., a branded pharmaceutical provider, received interim approval from the bankruptcy court in New York to use cash representing collateral for $225 million in senior notes. Papers filed in bankruptcy court show that cash will be depleted $17.5 million by the first week of November.
The company and an ad hoc committee of noteholders negotiated terms for the use of so-called cash collateral, including adherence to a three-month budget. At the outset of bankruptcy, K-V had $40.1 million cash, including $8.7 million in restricted cash, according to court papers.