KV Pharmaceutical bankruptcy: Silver Point Capital, a hedge fund managed by Edward Mule, recently added KV Pharmaceutical Co (OTCMKTS:KVPHQ) to its equity portfolio. In a 13G filing with the SEC, the hedge fund disclosed ownership of 1.7 million shares, which represents 11% of the company. The value of the stake amounts to approximately $13,700.
KV Pharmaceutical is a pharmaceutical company that is mainly engaged in products related to female healthcare. Last week the company emerged from Chapter 11 bankruptcy. KV Pharmaceutical’s reorganization came into effect on September 16, and the company received $375 million of recapitalization, managing at the same tie to reduce its debt. In the frames of the reorganization plan, several investors such as Capital Ventures International, Greywolf Capital, Kingdon Capital and Deutsche Bank, together with Silver Point Finance including their affiliates, supplied the majority of financing for KV’s new credit facility worth $100 million, and a $275 million rights offering/acquisition of new shares, the company said in a statement.
In addition to Edward Mule’s hedge fund, another big shareholder in KV Pharmaceutical is Larry Robbins’ Glenview Capital, which at the beginning of August, amid KV’s bankruptcy, reduced its stake to 1.6 million shares, from 6.7 million.
Edward Mule’s Silver Point Capital is a hedge fund with a $950 million equity portfolio. The largest holding of Silver Point represents around 8 million shares of American International Group Inc (NYSE:AIG). It is followed by Delphi Automotive PLC (NYSE:DLPH), in which the hedge fund holds 5.5 million shares, and Visteon Corp (NYSE:VC). Check back here for more updates on KV Pharmaceutical post-bankruptcy.