K-V Pharmaceutical has announced a $20m working capital loan agreement with a US healthcare company in the wake of a US Food and Drug Administration (FDA) decision to remove a manufacturing and shipping ban.
K-V were force to recall all products and stop manufacturing and shipping in early 2009 following an FDA investigation into compliance matters, management misconduct and other issues.
The company received FDA permission to return potassium supplement Micro-K to market last week, following successful inspection of its facilities.
The loan agreement with US Healthcare I LLC and US Healthcare II LLC expires in January 2011. It calls for a 16.5% annual interest rate and an exclusive two-week negotiating period with the lender over an expanded, longer-term financing pact.