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Concordia International's debtholders approve recapitalization

Concordia International Corp. said it gained the required approvals from its debtholders regarding a previously announced recapitalization.

The Canadian specialty pharmaceutical company said in May that it had garnered support for a restructuring plan that would reduce its outstanding debt by about US$2.4 billion.

The recapitalization, part of the restructuring plan, required approval from debtholders after it had been authorized by the Ontario Superior Court of Justice.

The company, which has been unable to post a profit since 2014, is under court protection that prevents its creditors from pursuing other means to recover amounts lent.

Concordia said the votes related to about 99.7% of its outstanding principal amount of affected secured debt and about 97.1% of the outstanding principal amount of the company's affected unsecured debt were cast to approve the recapitalization transaction.

Under the restructuring plan, those holding secured debt, which stood at US$2.2 billion, will recover 93.4% of their existing claims via cash and the newly issued debt, while those with unsecured debt will receive 12% of the company as compensation for their holdings of US$1.6 billion.

The company also extended the deadline to June 12 from June 6, for debtholders to receive early consent consideration regarding the recapitalization.

Concordia International said that once the restructuring plan is approved by the debtholders, the company will seek the court's approval at a hearing June 26.