SAN JOSE, Calif., Dec. 24, 2014 /PRNewswire/ -- Viropro, Inc.
(OTCBB: VPRO) today announced its concern that the proposed sale by
a Receiver and Manager appointed by Bank Pembangunan Malaysia
Berhad (BPMB) of substantially all the assets of Alpha Biologics
Sdn Bhd (Alpha), a wholly owned subsidiary of Viropro located in
Penang, Malaysia, would cause
irreparable hard to Viropro and the other creditors of Alpha.
BPMB previously seized the Alpha facility and appointed Lim San
Peen of PricewaterhouseCoopers Advisory Services Sdn Bhd as
Receiver and Manager.
The Receiver and Manager did not notify Viropro of its plans to
liquidate the company by virtue of a complete asset sale.
Viropro management received the liquidation sale documents from one
of its shareholders and upon review of those documents it appears
to Viropro that BPMB's intention is to dismantle the facility and
render it unsuitable for its intended purpose, the manufacturing of
biologics. In addition, the Alpha equipment listed in the
notice of sale is represented by BPMB to be in good working
order. "During a physical inspection in August of 2014, we
determined that many of the most highly specialized instruments and
equipment in the production facility were severely damaged," noted
Joseph Vallner, Ph.D., Acting
President of Viropro. "These are very sensitive devices that
will require substantial investment to repair or relocate, and
while the demand for biologics is increasing dramatically
worldwide, there is minimal interest in used or damaged
equipment. Our desire to fully determine the scope of the
damage was interrupted by BPMB's abrupt seizure of the
facility."
"We continue to be dismayed by what appears to be a process that
is insensitive to the claims of former employees, the interests of
all of the creditors and the economic development strategy of
Malaysia," said Bruce Cohen, Chairman of the Viropro Board of
Directors. "The most expedient way to resolve the situation
at Alpha is to negotiate in good faith a debt restructuring that
will allow Alpha to generate revenue sufficient to pay its
creditors. Regrettably, our proposals to BPMB have been
rejected without a counter-offer."
Viropro is reviewing its legal remedies to address its concerns,
including the lack of notice about the liquidation of Alpha, the
potential increased liability for Alpha by the failure of the
liquidation notice to accurately describe the condition of the
equipment and whether the sale could be halted to preclude further
loss of the value of Alpha to the Viropro shareholders.
For more information, visit www.viropro.net.
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SOURCE Viropro, Inc.