SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 17, 2012
BIOVEST INTERNATIONAL, INC.
(Exact Name of Registrant as Specified in Charter)
324 South Hyde Park Avenue, Suite 350
Tampa, FL 33606
(Address of Principal Executive Offices; Zip Code)
Registrants telephone number, including area code: (813) 864-2554
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
BIOVEST INTERNATIONAL, INC.
Effective as of November 17, 2012, Biovest International, Inc. (the Company) entered into a Standstill Agreement (the Standstill Agreement) with Corps Real, LLC (Corps Real), PSource Structured Debt Limited, Valens U.S. SPV I, LLC, Valens Offshore SPV I, Ltd., Valens Offshore SPVII, Corp., Laurus Master Fund, Ltd. (in Liquidation), and EratoCorp. (collectively, the Valens Lenders), and LV Administrative Services, Inc.
Under the Standstill Agreement, Corps Real and the Valens Lenders agreed to extend the maturity dates of their respective notes from the Company in the aggregate principal amounts of $2.99 million and $23.5 million (the Notes), respectively, from November 17, 2012, to January 31, 2013. The purpose of such extension is to give the Company, Corps Real, and the Valens Lenders time and opportunity to negotiate a potential restructuring of the Notes. The Standstill Agreement also provides for a revolving line of credit facility in the principal amount of $1.5 million to be provided by Corps Real (the New Senior Credit Facility) subject to agreement of the parties upon final terms and acceptable documentation, and it also provides that the New Senior Credit Facility will be secured by all assets of the Company and that the Notes held by the Valens Lenders will be subordinated to the indebtedness under the New Senior Credit Facility. The Standstill Agreement anticipates the closing of the New Senior Credit Facility by December 1, 2012, and that the New Senior Credit Facility will bear interest of 16% per annum have a maturity date of the first (1st) anniversary of the closing of the New Senior Credit Facility. The Standstill Agreement provides that advances under the New Senior Credit Facility will be used only to fund the operations of the Company in accordance with a budget approved by Corps Real and the Valens Lenders.
The foregoing does not purport to be a complete description of the Standstill Agreement and is qualified by reference to the full text of the Standstill Agreement, which will be filed as an exhibit to the Companys Annual Report on Form 10-K for the year ended September 30, 2012.
On November 17, 2012, the Company failed to pay various debt obligations that became due on such date (the Matured Obligations). The Matured Obligations consist of the following:
As of the date of this Form 8-K, none of the above-mentioned creditors have taken any action to foreclose on any collateral securing the above obligations and have not taken any action to secure a judgment against the Company. As reported in Item 1.04 above, the Company, Corps Real and the Valens Lenders have entered into a Standstill Agreement extending the maturity of those obligations through January 31, 2013.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 23, 2012