K-V Pharmaceutical Receives Court Approval of Hologic Settlement

       K-V Pharmaceutical Receives Court Approval of Hologic Settlement

Clears Path Forward for K-V's Pursuit of Chapter 11 Reorganization Plan

PR Newswire

ST. LOUIS, Dec. 28, 2012

ST. LOUIS, Dec. 28, 2012 /PRNewswire/ -- K-V Pharmaceutical Company ("K-V" or
"the Company") today announced that the U. S. Bankruptcy Court for the
Southern District of New York, the Honorable Judge Allan L. Gropper presiding,
approved the Company's settlement agreement with Hologic, Inc. ("Hologic
Settlement"), and authorized the Company to enter into an $85 million
debtor-in-possession ("DIP") financing to, among other things, fund the
settlement. 

"The resolution of the Hologic litigation is a major milestone in our
restructuring. Now that it is resolved, K-V can focus on completing all other
necessary steps for confirmation of a plan of reorganization and timely
emergence from Chapter 11," said K-V President and CEO Greg Divis. "We are
committed to our core women's health care business and continue to work
closely with our customers to advance the care of the patients we serve."

The Hologic Settlement resolves all disputes between K-V and Hologic related
to Makena®, confirms K-V's ownership of Makena® and allows the Company to move
forward with their efforts to pursue a plan of reorganizationbased upon
Makena®. The $85 million DIP financing facility will be used to satisfy the
terms of the Hologic Settlement, provide additional financial flexibility
during the pendency of the Company's Chapter 11 proceeding and fund certain
payments under the proposed plan of reorganization.

The DIP financing contains various bankruptcy milestones including a
requirement that the Company file a proposed plan of reorganization in
January. The proposed plan, which has the support of over 75% of the
Company's prepetition senior secured noteholders based on principal amount
held,is intended to maximize recoveries to stakeholders of the Company.

K-V and certain of its affiliates commenced cases to reorganize under Chapter
11 of the U.S. Bankruptcy Code on August 4, 2012. The Chapter 11 cases are
being jointly administered under case number 12-13346.

The DIP Lenders consist of affiliates or funds of each of Silver Point
Finance, LLC, Whitebox Advisors, LLC, and Pioneer Investment Management, Inc.

Willkie Farr & Gallagher LLP serves as bankruptcy counsel to K-V, and
Jefferies & Co., Inc. as financial advisor and investment banker.

Updates and additional information can be found at the Company's website
www.kvph.com. In addition, the Company's Claims Administrator, Epiq Bankruptcy
Solutions, Inc., maintains a web-based resource where documents from the
Chapter 11 cases, including the Company's Petitions, can be found,
http://dm.epiq11.com/KVD.

About K-V Pharmaceutical Company

K-V Pharmaceutical Company is a specialty branded pharmaceutical company with
a primary focus in the area of women's healthcare. As such, we are committed
to advancing the health of women across all the stages of their lives.

For further information about K-V Pharmaceutical Company, please visit the
Company's corporate website at www.kvph.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains various forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995 (the
"PSLRA") and which may be based on or include assumptions concerning our
operations, future results and prospects. Such statements may be identified by
the use of words like "plan," "expect," "aim," "believe," "project,"
"anticipate," "commit," "intend," "estimate," "will," "should," "could,"
"potential" and other expressions that indicate future events and trends.

All statements that address expectations or projections about the future,
including, without limitation, statements about product launches, governmental
and regulatory actions and proceedings, market position, revenues,
expenditures and the impact of recalls and suspensions of shipments on
revenues, adjustments to the financial statements, the filing of amended
filings with the Securities and Exchange Commission ("SEC") and other
financial results, are forward-looking statements.

All forward-looking statements are based on current expectations and are
subject to risk and uncertainties. In connection with the PSLRA's "safe
harbor" provisions, we provide the following cautionary statements identifying
important economic, competitive, political, regulatory and technological
factors, among others, that could cause actual results or events to differ
materially from those set forth or implied by the forward-looking statements
and related assumptions. Such factors include (but are not limited to): (1)
the ability of the Company and its subsidiaries to continue as a going
concern; (2) the ability of the Company and its subsidiaries to obtain
Bankruptcy Court approval of motions they file in the Chapter 11 cases; (3)
the ability of the Company and its subsidiaries to prosecute, develop and
consummate a plan of reorganization with respect to the Chapter 11 cases;
(4)the effects of the bankruptcy filing on the Company and its subsidiaries
and the interests of various creditors, equity holders and other constituents;
(5) the effects of rulings of the Bankruptcy Court in the Chapter 11 cases and
the outcome of the cases in general; (6) the length of time the Company and
its subsidiaries will operate under the Chapter 11 cases; (7) risks associated
with third-party motions in the Chapter 11 cases, which may interfere with the
ability of the Company and its subsidiaries to develop one or more plans of
reorganization and consummate such plans once they are developed; (8) the
potential adverse effects of the Chapter 11 proceedings on the Company's
liquidity or results of operations; (9) the ability to execute the Company's
business and restructuring plans; (10) increased legal costs related to the
Company's bankruptcy filing and other litigation; (11) that its Class A Common
Stock and Class B Common Stock will be, or will continue to be, traded on the
OTCQB Marketplace and whether sufficient volumes and liquidity will develop;
and (12) the ability of the Company and its subsidiaries to maintain contracts
that are critical to their operation, including to obtain and maintain normal
terms with their vendors, customers and service providers and to retain key
executives, managers and employees.

This discussion is not exhaustive, but is designed to highlight important
factors that may impact our forward-looking statements.

Because the factors referred to above, as well as the statements included in
Part I, Item 1A—"Risk Factors," of our Annual Report on Form 10-K for the
fiscal year ended March 31, 2012 and under the heading "Risk Factors" in our
Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on July 31, 2012, could cause actual results or outcomes to differ
materially from those expressed in any forward-looking statements made by us
or on our behalf, you should not place undue reliance on any forward-looking
statements. All forward-looking statements attributable to us are expressly
qualified in their entirety by the cautionary statements in this "Cautionary
Note Regarding Forward-Looking Statements" and the risk factors that are
included under Part I, Item 1A of our Annual Report on Form 10-K for the
fiscal year ended March 31, 2012 and under the heading "Risk Factors" in our
Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on July 31, 2012. Further, any forward-looking statement speaks
only as of the date on which it is made and we are under no obligation to
update any of the forward-looking statements after the date of this release.
New factors emerge from time to time, and it is not possible for us to predict
which factors will arise, when they will arise and/or their effects. In
addition, we cannot assess the impact of each factor on our future business or
financial condition or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking statements.

SOURCE K-V Pharmaceutical Company

Website: http://www.kvph.com
Contact: Brainerd Communicators, Inc., Tony Herrling, +1-212-986-6667,
herrling@braincomm.com, Brad Edwards, +1-212-986-6667, edwards@braincomm.com
 
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