Reuters: Private Equity: UPDATE 1-Savient says court denies creditor's injunction request

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UPDATE 1-Savient says court denies creditor's injunction request May 8th 2012, 11:29 Tue May 8, 2012 7:29am EDT May 8 (Reuters) - Savient Pharmaceuticals Inc said a Delaware court denied a request for an injunction by its largest creditor, Tang Capital Partners, to halt Savient's plan to raise about $44 million and extend the maturity date on certain debt. Tang capital had sued Savient last week alleging that the company's directors breached their fiduciary duties by taking certain actions that were not in the best interests of creditors. The creditor had also sought relief from the Court of Chancery of the State of Delaware to declare the drugmaker insolvent, claiming it was unjustifiably hemorrhaging cash in pursuit of a product that had failed commercially. Savient's gout drug Krystexxa managed sales of just $3 million in the most recent quarter, after more than a year on the market. Savient said it entered into an agreement with certain holders of its currently outstanding 4.75 percent convertible senior notes due 2018 to raise about $44 million. It also extended the maturity date on about 50 percent of the existing notes by about 15 months. "With this transaction, Savient believes that its cash and cash equivalents provide sufficient liquidity for at least the next two years," Savient's interim chief executive David Norton said in a statement. Savient shares closed at $1.56 on Monday on the Nasdaq.

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