VIVUS (VVUS) Announces Updated Agreement with Icahn Enterprises Holdings L.P.
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VIVUS, Inc. (Nasdaq: VVUS; the “Company”), a biopharmaceutical company, today announced that it has updated its agreement regarding its corporate debt with Icahn Enterprises Holdings L.P. (dba IEH Biopharma LLC), which holds a principal amount of approximately $170.2 million of the Company’s Convertible Senior Notes.
Under the terms of the agreement, the Company will continue to work with IEH Biopharma on an exclusive basis in respect of any restructuring, financing or other material transaction concerning the Company or its assets, with the exception that the Company is granted a 30-day period to refinance and pay in full in cash all amounts due and owing under the Convertible Senior Notes to IEH Biopharma. If the Company is unable to refinance on or before June 30, 2020, the Company and IEH Biopharma shall exclusively pursue an in court plan of reorganization. In the event certain conditions are satisfied under the plan of reorganization, stockholders of VIVUS shall receive a pro rata share of (a) $5 million and (b) a non-transferable contractual contingent value right to earn another $2 per share if certain financial milestones are met in 2021 and 2022. Additionally, IEH Biopharma will take 100% ownership of VIVUS. The agreement is subject to, among other things, IEH Biopharma’s due diligence and the Company’s preservation of its tax attributes.
“We appreciate the continued assistance and support of IEH Biopharma in allowing us an additional 30 days to refinance the Company,” said John Amos, VIVUS’ Chief Executive Officer.
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