SAN JOSE, Calif., Sept. 19, 2014 /PRNewswire/ -- Viropro, Inc.
(OTCBB: VPRO) today announced that Bank Pembangunan Malaysia Berhad
(BPMB) has seized the assets of Alpha Biologics Sdn Bhd (Alpha), a
wholly owned subsidiary of Viropro located in Penang, Malaysia. The Bank has appointed
Lim San Peen of PricewaterhouseCoopers Advisory Services Sdn Bhd as
Receiver and Manager of the Alpha property pursuant to Section
188(1)(a) of the Companies Act 1965 (Malaysia) under the powers contained in the
Debentures between Alpha and BPMB dated July
25, 2006 and December 22,
2009. The Receiver and Manager has advised the Directors of
Alpha that their powers to deal with the Company's property or to
manage its undertakings are suspended.
On July 25, 2006, Alpha entered
into a debenture agreement with BPMB for RM
20 million (US$6.2 million at
current exchange rates.). On December
22, 2009, Alpha entered in a debenture agreement with BPMB
for an additional RM 5 million.
As of July 31, 2014, the outstanding
balance on the loans plus accrued interest and penalties was
approximately RM 22.1 million
(US$6.8 million).
Representatives from Viropro, acting on behalf of Alpha, had
previously met with the members of the staff of the Credit Recovery
Group at BPMB and presented a proposal for restructuring the Alpha
debt. No reference was made to the Company's proposal in the
notification regarding the appointment of the Receiver and
Manager.
"We are deeply disappointed and dismayed by this unexpected and
counter-productive action by Bank Pembangunan," commented
Bruce Cohen, Viropro Chairman.
"Having presented a restructuring proposal in good faith, we were
surprised by the lack of a response to our plan and the unexpected
decision to appoint a Receiver and Manager without any notice."
Citing Sections 188(1)(b) and 189(2) of the aforementioned
Companies Act, Mr. Lim ordered the Alpha Directors to turn over all
of its assets and records to him within 14 days. Mr. Lim also
ordered the Directors not to carry on Alpha's business in any way
nor enter into any commitment on behalf of Alpha with his prior
approval.
"This action by the Bank undermines our ability to enter into
negotiations with partners, restore the business of Alpha and house
our new development programs in Malaysia," said Joseph
Vallner, Viropro President and CEO. "At full capacity,
the Alpha facility would have created as many as a hundred good
paying jobs for highly skilled graduates of Malaysia's universities."
Construction of the Alpha facility was completed in 2010.
In 2014, the facility was vandalized on several occasions,
resulting in significant damage to the building's electrical system
and a number of specialized instruments. Coincident with the
delivery of the notice regarding the appointment, representatives
from PricewaterhouseCoopers dismissed the security guards retained
on behalf of Alpha and replaced them with guards of their own.
Viropro also announced today that the Company is undertaking a
comprehensive review of its strategy and operations to identify
opportunities to enhance shareholder value and to determine the
best course of action.
About Viropro
Viropro is engaged in the development and manufacturing of
biopharmaceuticals. Viropro seeks to offer cost-effective and
timely solutions to the biopharma industry from drug concept
through to product manufacturing.
About Bank Pembangunan Malaysia Berhad
Bank Pembangunan Malaysia Berhad (BPMB) is wholly owned by the
Malaysia Government through the Minister of Finance. BPMB is
mandated to provide medium to long term financing for Islamic and
conventional facilities to capital intensive industries, which
include infrastructure projects, maritime, technology and oil &
gas sectors.
Contact: info@viropro.net
SOURCE Viropro, Inc.