K-V Pharmaceutical Co. (KV.A) Monday said that its plan of reorganization has become effective and that it has successfully emerged from chapter 11 with a notably reduced debt and a $375 million recapitalization.
Pursuant to the plan, investors led by Capital Ventures International, Greywolf Capital, Kingdon Capital and Deutsche Bank and/or affiliates of each of the foregoing have provided the majority of funding of the Company's new $100 million credit facility, and $275 million rights offering and direct purchase of new common shares.
KV's existing senior secured notes will be paid in cash, and general unsecured creditors will receive a pro rata share of $10.25 million. KV's existing convertible subordinated noteholders will receive 7 percent of KV's new common shares plus any shares purchased through the rights offering or direct purchase of shares. Under the Plan, all existing preferred and common stock has been cancelled.
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May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.