Scrip is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By


Favrille resolves debt obligations

This article was originally published in Scrip

Executive Summary

Favrillehas resolved its debt obligation to its creditors, General Electric Capital Corporation and Oxford Financial Corporation, which have agreed to release the general lien on the company's assets. The lenders have now received $8.8 million as repayment of outstanding principal and accrued interest and Favrille has reimbursed them with $47,000 of further transaction costs. Acceleration of the loan was triggered after the company's cash fell below the $14.5 million minimum cash covenant on May 30th. Following the failure of the company's lead product, Specifid, to demonstrate activity in a Phase III registration trial, Favrille's future looks uncertain. The company now faces either a reorganisation which might involve in-licensing of products, a merger with another entity or liquidation of the company either inside or outside of bankruptcy, said Dr John Longenecker, president and CEO of Favrille.


Related Companies




Ask The Analyst

Please Note: Click here for more information on the Ask the Analyst service.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts