Savient Reaches Agreement On Use Of Cash Collateral

             Savient Reaches Agreement On Use Of Cash Collateral

Savient to Seek Court Approval of Final Cash Collateral Order on December 13,
2013

PR Newswire

BRIDGEWATER, N.J., Dec. 10, 2013

BRIDGEWATER, N.J., Dec. 10, 2013 /PRNewswire/ -- Savient Pharmaceuticals,
Inc. (NASDAQ: SVNT) ("Savient") announced today that an agreement in principle
has been reached by and among Savient, the Official Committee of Unsecured
Creditors appointed in Savient's Chapter 11 case (the "UCC") and the
Unofficial Committee of Senior Secured Noteholders (the "Unofficial Committee"
and, together with Savient and the UCC, the "Parties"), whose members hold
approximately 90% of Savient's senior secured notes (the "Secured
Noteholders"). As part of the agreement, it is anticipated that the UCC will
withdraw its objection and consent to entry of a final order authorizing
Savient's continued use of cash collateral (the "Final Cash Collateral Order")
by the U.S. Bankruptcy Court for the District of Delaware (the "Court"). The
Parties anticipate submitting a proposed Final Cash Collateral Order for
consideration and approval by the Court on or before the hearing to consider
the Final Cash Collateral Order, currently scheduled to take place on December
13, 2013 (subject to such notice procedures as may be agreed by the Parties).
If entered by the Court, the proposed Final Cash Collateral Order would, among
other things, provide for the distribution of proceeds from the sale of all or
substantially all of Savient's assets (the "Sale") and of additional amounts
of cash collateral to the Secured Noteholders promptly after the Sale
closing. The agreement further contemplates that the UCC would waive its
rights to challenge the Secured Noteholders' liens and claims subject to the
implementation of a global settlement between Savient, the UCC and the
Unofficial Committee (the "Proposed Settlement"). The Proposed Settlement,
which remains subject to documentation and final agreement by the Parties and
is to be separately submitted for approval by the Court at a later date, is
anticipated to include the following principal terms (but may be amended or
modified by agreement of the Parties):

  o$1,775,000 in cash would be used to fund distributions to unsecured
    creditors under a confirmed plan of reorganization or liquidation (the
    "Plan") and Court-approved fees and expenses of the UCC's professionals;
  o$100,000 in additional cash would be used to pay the fees and expenses of
    the indenture trustee for Savient's convertible notes;
  o100% of any proceeds received by Savient from a certain pending litigation
    with a major distribution customer (the "Litigation") would be used to
    fund distributions to unsecured creditors pursuant to a confirmed Plan;
  oIf Savient's process to sell all or substantially all of its assets
    results in a purchase price that exceeds $60 million (such excess amounts,
    the "Overbid Amounts"), 3% of the first $10 million of any such Overbid
    Amounts and 4% of any additional Overbid Amounts would be used to fund
    distributions to unsecured creditors pursuant to a confirmed Plan, subject
    to an aggregate cap of $750,000;
  oFollowing the cash sweep by the Secured Noteholders under the Final Cash
    Collateral Order, the amounts referred to in the first four bullets above
    would be placed in a segregated account and held in trust for the benefit
    of general unsecured creditors and the Committee pursuant to the Final
    Cash Collateral Order;
  oThe Secured Noteholders would receive no distribution on account of any
    unsecured deficiency claim;
  oAny accounts receivable that Savient collects following the closing of the
    Sale (except for any accounts receivable associated with the Litigation)
    would be placed in a segregated account for the benefit of the Secured
    Noteholders;
  oSavient's cash collateral budget would include $25,000 per month for the
    UCC's counsel;
  oThe UCC or a chapter 7 trustee would have the right to pursue disgorgement
    or lien avoidance actions against the Secured Noteholders under certain
    circumstances in the event that the Proposed Settlement were not
    implemented; and
  oThe Proposed Settlement would include customary and appropriate release
    and exculpation provisions.

Additional information, court filings and other documents related to this
process, is available through Savient's claims agent, the Garden City Group,
at www.gcginc.com/cases/svnt or 866-297-1238.

Skadden, Arps, Slate, Meagher & Flom LLP and Cole, Schotz, Meisel, Forman &
Leonard P.A. are serving as the Company's legal advisors, and Lazard is
serving as its financial advisor.

Stroock & Stroock & Lavan, LLP and Pachulski Stang Ziehl & Jones, LLP are
serving as the UCC's legal advisors, and Mesirow Financial Consulting, LLC is
serving as its financial advisor.

About KRYSTEXXA®

KRYSTEXXA® (pegloticase) is a PEGylated uric acid specific enzyme for
administration by intravenous infusion. The active substance pegloticase is a
covalent conjugate of uricase produced by a genetically modified strain of
Escherichia coli and monomethoxypoly (ethylene glycol). KRYSTEXXA was
approved in the U.S. in September 2010.KRYSTEXXA is indicated in the U.S. for
the treatment of chronic gout in adult patients refractory to conventional
therapy.KRYSTEXXA is not recommended for the treatment of asymptomatic
hyperuricemia. KRYSTEXXA was approved by the EMA in January 2013 to treat
severe, debilitating chronic tophaceous gout.

About Savient Pharmaceuticals, Inc.

Savient Pharmaceuticals, Inc. is a specialty biopharmaceutical company focused
on developing and commercializing KRYSTEXXA® (pegloticase) for the treatment
of chronic gout in adult patients who do not respond to conventional therapy.
Savient has exclusively licensed worldwide rights to the technology related to
KRYSTEXXA and its uses from Duke University ("Duke"), which developed the
recombinant uricase enzyme used in the manufacture of KRYSTEXXA, and Mountain
View Pharmaceuticals, Inc. ("MVP"), which developed the PEGylation technology
used in the manufacture of KRYSTEXXA. Each of MVP and Duke have been granted
U.S. and foreign patents disclosing and claiming the licensed technology.
Savient also owns or co-owns U.S. and foreign patents and patent applications,
which collectively form a broad portfolio of patents covering the composition,
manufacture and methods of use and administration of KRYSTEXXA. In the U.S.,
Savient also supplies Oxandrin® (oxandrolone tablets, USP) CIII and
co-promotes Kineret® (anakinra) with Swedish Orphan Biovitrum AB (Sobi). For
more information, please visit the Company's website at www.savient.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information in this press release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. All statements contained in this press release that are not
statements of historical fact, including statements regarding the satisfaction
of conditions to the closing of the proposed asset sale, the potential of the
proposed asset sale and the expectation that the Chapter 11 filings will
enable us to sell our assets in an orderly manner and maximize value for our
stakeholders, the necessity of bankruptcy court approvals to conduct and
complete the proposed asset sale and other statements regarding our strategy,
future operations, future financial positions, future performance,
commercialization of KRYSTEXXA, prospects and plans and objectives of
management, should be considered forward-looking statements. We often use
words such as "anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," "may," "predict," "will," "would," "could," "should," "target" and
similar expressions to identify forward-looking statements. Actual results or
events could differ materially from those indicated in forward-looking
statements as a result of risks and uncertainties, including, among others,
the potential adverse impact of the Chapter 11 filings on our liquidity or
results of operations, changes in our ability to meet financial obligations
during the Chapter 11 process or to maintain contracts that are critical to
our operations, the outcome or timing of the Chapter 11 process and the
proposed asset sale, the effect of the Chapter 11 filings or proposed asset
sale on our relationships with third parties, regulatory authorities and
employees, proceedings that may be brought by third parties in connection with
the Chapter 11 process or the proposed asset sale, Bankruptcy Court approval
or other conditions to the proposed asset sale, and the timing or amount of
any distributions to the Company's stakeholders. For a discussion of some of
the additional risks and important factors that we believe could cause actual
results or events to differ from the forward-looking statements that we make,
see the sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our Quarterly
Report on Form 10-Q for the quarter ended September 30, 2013. In addition, new
risks and uncertainties emerge from time to time, and it is not possible for
the Company to predict or assess the impact of every factor that may cause its
actual results or events to differ from those contained in any forward-looking
statements. Accordingly, you should not place undue reliance on any
forward-looking statements contained in this press release. Any
forward-looking statements speak only as of the date of this press release. We
undertake no obligation to publicly update forward-looking statements, whether
as a result of new information, future events or otherwise.

SVNT — G

Contact:
John P. Hamill, Co- President and Chief Financial Officer / Philip K.
Yachmetz, Co-President and Chief Business Officer
information@savient.com
908-864-7382

Kelly Sullivan / James Golden
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

SOURCE Savient Pharmaceuticals, Inc.
 
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