AtheroGenics (AGIX) Noteholders Expect Company Will Elect Not to Pay 2008 Notes When Due
9/2/2008 9:09:25 AM
ATLANTA--(BUSINESS WIRE)--CNH Partners, LLC, Tamalpais Asset Management LP, Tang Capital Partners, LP, and Zazove Associates LLC (the “08 Noteholders”), which collectively hold approximately 96% of the outstanding 4 ½ % Convertible Notes Due 2008 (the “08 Notes”) issued by AtheroGenics, Inc. (“AtheroGenics”), today announced that they expect, based on conversations with representatives of AtheroGenics, that AtheroGenics will elect not to repay their debt under the 08 Notes. The 08 Notes mature today, September 2, 2008, and the principal amount of approximately $30.5 million is due and payable. According to AtheroGenic’s latest Quarterly Report on Form 10-Q, AtheroGenics had approximately $66.2 million in cash, cash equivalents, and short term investments as of June 30, 2008. Moreover, the 08 Noteholders believe additional funds are available at market terms to fund ongoing operations, including from the 08 Noteholders, although the 08 Noteholders are not aware that AtheroGenics has made any attempt to secure such financing.