In an announcement, K-V Pharmaceutical Company said its plan of reorganization had become effective. It said it had successfully emerged from Chapter 11 bankruptcy with significantly reduced overhead debt with a USD375 million recapitalization.

According to its bankruptcy plan, investors led Capital Ventures International, Deutsche Bank with Silver Point Finance, Greywolf Capital and Kingdon Capital had provided funding for the latest USD100 million credit facility as well as a USD275 million rights offering as well as direct purchases of new common shares.

"As KV emerges from Chapter 11 today, we are stronger, better capitalized and more competitive company with a solid financial foundation for future growth. We deeply appreciate the support from our new investors and partners as we continue to execute on advancing women's health with our well-established portfolio of FDA-approved medications and focus, first and foremost, on our commitment to patients," said KV Pharmaceuticals CEO Greg Davis.

The plan would entail the existing senior secured notes would be paid in cash in full in accordance with the terms of the plan. The general unsecured creditors would receive a pro-rata share of USD10.25 million. The  current convertible subordinated noteholders would receive 7% of new common shares togethr with any shares purchased with the rights offering or even direct share purchases.