Simply restructure its debts or sell the company
Dendreon will restructure with senior noteholders that represent 84 percent of $620 million aggregate principal amount of 2016 notes.
Under the terms of the agreement, the company can choose to simply restructure its debts or sell the company and its assets. Bids for the company's assets will not be accepted for less than $275 million.
Dendreon is liquid enough to support the restructuring and has about $100 million in cash, cash equivalents and investments, will operate as usual for the time being and will continue to distribute Provenge.
The company has no plans to go out of business.
Seattle-based Dendreon (NASDAQ: DNDN) opened a 155,000-square-foot cancer treatment manufacturing plant near Hartsfield-Jackson International Airport in Aug. 2011.
Around the same time, the company's stock plummeted in 2011 after sales of its cancer drug Provenge were slower than expected.
And during the drug's most important clinical trial, researchers analyzed data differently than they told U.S. regulators they would, which artificially inflated the drug's benefits as they were communicated in a 2010 New England Journal of Medicine Paper, according to Reuters.