Biovest restructures $30 million

Biovest International, Inc., has taken a big step forward in its effort to emerge from Chapter 11 bankruptcy by reaching a settlement with its largest creditor.

Biovest restructured $30.2 million in mostly short-term debt owed to Laurus Master Fund, Ltd., into two notes worth $29.1 million total, according to a release issued today. Both principal payment and interest accrual will be deferred until two years after Biovest emerges from Chapter 11 bankruptcy.

Lauras also agreed to reduce the royalties it collects from Biovest, and has cancelled contracts which had allowed it to purchase millions of shares of Biovest stock for $0.01, in exchange for a 9.99% equity stake in the company.

Biovest is a Tampa-based company that specializes in the development of cancer treatments, including its BiovaxID product, which targets lymphoma.