Bankruptcy

Involuntary Chapter 7 Bankruptcy Petition Filed Against AtheroGenics, Inc.

By Scott Riddle

Creditors filed an Involuntary Chapter 7 Bankruptcy Petition against Alpharetta based  AtheroGenics, Inc.  (AGIX: Google Finance).  In re AtheroGenics, Inc., Involuntary Ch. 7 Case No. 08-78200-jem (filed September 15, 2008).   According to its website, AtheroGenics is "a pharmaceutical company focused on the discovery, development and commercialization of novel drugs for the treatment of chronic inflammatory diseases, including diabetes and coronary artery disease (atherosclerosis)."

The involuntary petition was filed by Petitioning Creditors AQR Absolute Return Master Account, L.P., CNH CA Master Account, L.P., Tamalpais Global Partner Master Fund, LTD, Tang Capital Partners, LP, Zazove High Yield Convertible Securities Fund, L.P. The Petitioning Creditors are represented by E. Penn Nicholson at Powell Goldstein.

From Deal Watch Blog:

Five hedge funds on Monday filed an involuntary petition for Chapter 7 bankruptcy against AtheroGenics Inc. of Alpharetta. The filing came about two weeks after AtheroGenics announced that it would not repay its 4.5% Convertible Notes that were due on Sept. 2. AtheroGenics said it wasn’t repaying the notes because it “has been attempting to restructure its 2008 Notes prior to their maturity, but was unable to agree on a restructuring on terms acceptable to the Company and the holders of the 2008 Notes.” AtheroGenics has also hired Morgan Stanley to explore alternatives.

Full post as published by Georgia Bankruptcy Blog on September 18, 2008 (boomark / email).