Exhibit 99.1

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

-  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -   -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -		x
		:
In re:		:		Chapter 11
		:
SAVIENT PHARMACEUTICALS, INC.,		:		Case No. 13-12680 (MFW)
et al.,		:
		:		Jointly Administered
Debtors.1		:
-  -  -  -  -  -  -  -  -  -  -  -   -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -   -  -		:   x

NOTICE OF FILING OF DEBTORS’ MONTHLY OPERATING REPORT

FOR THE PERIOD OF JANUARY 1, 2014 THROUGH JANUARY 31, 2014

PLEASE TAKE NOTICE that the debtors and debtors-in-possession in the above-captioned cases

(collectively, the “Debtors”) filed today the Debtors’ Monthly Operating Report for the Period of January 1,

2014 through January 31, 2014, a copy of which is attached hereto as Exhibit A (the “Monthly Operating

Report”).

 

 

Dated:		Wilmington, Delaware
		February 20, 2014

 

 

 

1

The Debtors and the last four digits of their respective taxpayer identification numbers are as follows: Savient Pharmaceuticals, Inc. (3811); and Savient Pharma Holdings, Inc. (0701). The address of the Debtors’ corporate headquarters is 400 Crossing Boulevard, 4th Floor, Bridgewater, New Jersey 08807.

 

51790/0001-10332996v1

---

EXHIBIT A

Monthly Operating Report

 

51790/0001-10332996v1

---

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

In re: Savient Pharmaceuticals, Inc., et al		Case No.13-12680 (MFW)
		Reporting Period: January 1, 2014 - January 31, 2014

MONTHLY OPERATING REPORT

 

 

 

REQUIRED DOCUMENTS		Form No.		Document   Attached		Explanation   Attached**		Affidavit/Supplemen   t Attached**
Schedule of Cash Receipts and Disbursements		MOR-1		Yes
Bank Reconciliation (or copies of debtor’s bank reconciliation		MOR-1a		Yes
Schedule of Professional Fees Paid		MOR-1b		Yes
Copies of bank statements				No		Yes
Cash disbursements journals				No		Yes
Statement of Operations		MOR-2		Yes
Balance Sheet		MOR-3		Yes
Status of Postpetition Taxes		MOR-4		Yes
Copies of IRS Form 6123 or payment receipt				No		Yes
Copies of tax returns filed during reporting period				No		Yes
Summary of Unpaid Postpetition Debts		MOR-4		Yes
Listing of aged accounts payable		MOR-4		Yes
Accounts Receivable Reconciliation and Aging		MOR-5		Yes
Debtor Questionnaire		MOR-5		Yes
** Explaination and Affidavit/Supplement are attached as a part of the Company’s General Notes

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents

are true and correct to the best of my knowledge and belief.

 

Signature of Debtor				Date
Signature of Joint Debtor				Date
/s/ Mathew C. Bazley				February 20, 2014
Signature of Authorized Individual*				Date
Mathew C. Bazley				Chief Liquidation Officer, President, and Secretary
Printed Name of Authorized Individual				Title of Authorized Individual

 

MOR_Cover		MOR COVER (04/07)

---

In re: Savient Pharmaceuticals, Inc. et al.				Case Nos. 13-12680, 13-12681 (MFW)
				Reporting Period: 1/1/2014 - 1/31/2014

NOTES TO THE MONTHLY OPERATING REPORT

General Notes

Debtors. Debtor Savient Pharmaceuticals, Inc. is referred to herein as “Savient” or “SPI,” and Debtor Savient Pharma Holdings, Inc. is referred to herein as “SPHI.”

Debtor-in-Possession Financial Statements. The Debtors’ financial statements and supplemental information contained herein are unaudited, preliminary and may not comply with generally accepted accounting principles in the United States of America (“U.S. GAAP”) in all material respects.

Accounting Standards Codification, (“ASC”) 852-10, Reorganizations, which incorporated the guidance in American Institute of Certified Public Accountants Statement of Position 90-7, Financial Reporting by Entities in Reorganization under the Bankruptcy Code, (SOP 90-7), is applicable to companies in chapter 11 and generally does not change the manner in which financial statements are prepared. It does require, however, that the financial statements for periods subsequent to the filing of the chapter 11 petition distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of business.

The Debtors’ financial statements contained herein have been prepared in accordance with the guidance in ASC 852-10. The unaudited financial statements have been derived from the books and records of the Debtors. This information, however, has not been subject to procedures that would typically be applied to financial information presented in accordance with U.S GAAP, and upon the application of such procedures, the Debtors believe that the financial information could be subject to changes, and these changes could be material. The information furnished in this report includes primarily normal recurring adjustments, but does not include all of the adjustments that would be typically made in accordance with U.S. GAAP.

The results of operations contained herein are not necessarily indicative of results that are expected from any other period or for the full year and may not necessarily reflect the combined results of operations, financial position and cash flows of the Debtors in the future.

Intercompany Transactions. Receivables and payables between the Debtors and/or Non-Debtors have not been eliminated.

Liabilities Subject to Compromise. As a result of the chapter 11 filings, the payment of prepetition indebtedness is subject to compromise or other treatment under a plan of reorganization or liquidation.

The determination of how liabilities ultimately will be settled and treated cannot be made until the United States Bankruptcy Court for the District of Delaware approves a chapter 11 plan of reorganization or liquidation. Accordingly, the ultimate amount of such liabilities is not determinable at this time. Revenues, expenses, realized gains and losses and provisions for losses that can be directly associated with the reorganization and restructuring of the business must be reported separately as reorganization items in the Debtors’ statements of operations.

 

51790/0001-10332990v1

---

The Debtors’ balance sheets, in addition, must distinguish prepetition liabilities subject to compromise from both those prepetition liabilities that are not subject to compromise and from postpetition liabilities. Liabilities that may be affected by a plan of reorganization or liquidation must be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. In addition, cash provided by reorganization items must be disclosed separately in the Debtors’ statements of cash flows. The amounts currently classified as liabilities subject to compromise are preliminary and may be subject to future adjustments depending on Court actions, further developments with respect to disputed claims, determinations of the secured status of certain claims, the values of any collateral securing such claims, rejection of executory contracts, continued reconciliation and other events.

While in bankruptcy, the Debtors expect their financial results to continue to be volatile as asset impairments, asset dispositions, contract terminations and rejections and claims assessments may significantly impact the Debtors’ financial statements. As a result, the Debtors’ historical financial performance is likely not indicative of its financial performance after the date of the chapter 11 filings.

Notes to MOR-1a

Copies of Bank Statements and Cash Disbursements Journals. The copies of the Debtors’ bank statements and cash disbursement journals are voluminous and not included herein, but will be provided upon request.

Notes to MOR-4

Copies of IRS Form 6123; Tax Returns. To be provided upon request.

Savient MOR-4. The postpetition accounts payable reported for Debtor Savient Pharmaceuticals, Inc. represent trade vendor invoices that have been entered into the Debtor’s accounts payable system and does not include accruals for invoices not yet received or approved.

 

2

51790/0001-10332990v1

---

In re: Savient Pharmaceuticals, Inc., et al		Case No. 13-12680 (MFW)
Debtor		Reporting Period: January 1, 2014 - January 31, 2014

SAVIENT (13-12680): SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

 

		BANK ACCOUNT ACTIVITY FOR THE MONTH ENDED January 31, 2014																																								CUMULATIVE FILING TO DATE OCTOBER 15, 2013 THROUGH JANUARY 31, 2014
		PNC				AR Lockbox				Fidelity				Wells Fargo				Wells Fargo Utilities				PNC -LOC (secure LOC)				PNC - LOC (covers fees)				Petty Cash						TOTAL						TOTAL
CASH BEGINNING OF MONTH		$	10,388,517			$	-			$	-			$	6,209,254			$	14,228			$	1,304,340			$	150,222			$	1,000					$	18,067,561					$	12,255,382
RECEIPTS
TRANSFER FROM SUB (SPHI)			-				-				-				-				-												-						-						13,700,356
ACCOUNTS RECEIVABLE			730,186				1,438,474				-				-				-												-						2,168,660						7,200,942
TRANSFERS (FROM FIDELITY MM)			-				-				-				-				-												-						-						383,692
STATE MEDICAID REFUNDS			-				-				-				-				-												-						-						98,009
REFUNDS FROM VENDORS			7,812				-				-				-				-												-						7,812						84,006
ACTAVIS-SALES (oxandrolone royalty)			-				-				-				-				-												-						-						69,540
KINERET CO-PROMOTE REVENUE			-				-				-				-				-												-						-						61,859
TRANSFER FROM OPERATING ACCOUNT			-				-				-				-				-												-						-						14,228
COBRA PAYMENTS FROM EMPLOYEES			6,327				-				-				-				-												-						6,327						31,495
AMEX RECEIPTS FROM EMPLOYEES			7,250				-				-				-				-												-						7,250						8,208
RECEIPTS FROM EMPLOYEE ADVANCES			-				-				-				-				-												-						-						500
EQUIPMENT PURCHASES BY EMPLOYEES			-				-				-				-				-												-						-						400
DIVIDENDS ON MONEY MARKET ACCOUNT			-				-				-				-				-												-						-						123
INVESTMENT INCOME FROM CD PORFOLIO			-				-				-				-				-												-						-						576
Proceeds from Sales to Crealta			116,282,138				-				-				-				-												-						116,282,138						116,282,138
			-				-				-				-				-												-						-						-
TOTAL RECEIPTS		$	117,033,714			$	1,438,474			$	-			$	-			$	-			$	-			$	-			$	-					$	118,472,188					$	137,936,073
DISBURSEMENTS
PAYMENTS TO NOTE HOLDERS			116,103,950				435,000				-				-				-												-						116,538,950						124,538,950
NET PAYROLL			1,220,854				-				-				-				-												-						1,220,854						3,646,919
PROFESSIONAL FEES			2,256,769				-				-				-				-												-						2,256,769						2,819,106
CONSULTANT FEES			9,296
VENDOR PAYMENTS			837,840				-				-				-				-												-						837,840						1,385,311
EMPLOYEE BENEFITS (401K & Health)			118,225				-				-				-				-												-						118,225						578,218
STATE AGENCIES AND TAX PAYMENTS			-				-				-				-				-												-						-						453,007
TRANSFERS TO OPERATING ACCOUNT			-				-				-				-				-												-						-						383,692
RENT			15,274				-				-				-				-												-						15,274						384,702
CONCUR (employee expenses)			46,713				-				-				-				-												-						46,713						270,885
PAYMENTS TO BOARD OF DIRECTORS			73,010				-				-				-				-												-						73,010						178,136
FUNDING FOR CO-PAY PROGRAM			-				-				-				-				-												-						-						36,872
AMERICAN EXPRESS (employee expenses)			2,838				-				-				-				-												-						2,838						28,753
AMERIFLEX (flex spending)			6,240				-				-				-				-												-						6,240						28,630
TRANSFER TO WELLS FARGO UTILITY ACCOUNT			-				-				-				-				-												-						-						14,228
EMPLOYEE EDUCATION REIMBURSEMENT			-				-				-				-				-												-						-						12,985
STORAGE AND WAREHOUSE (INVENTORY)			1,665				-				-				-				-												-						1,665						4,995
BANK FEES			11,732				-				-				-				-												-						11,732						14,222
SHIPPING AND DELIVERY			-				-				-				-				-												-						-						2,205
TOTAL DISBURSEMENTS		$	120,704,406			$	435,000			$	-			$	-			$	-			$	-			$	-			$	-					$	121,130,110					$	134,781,816
NET CASH FLOW		$	(3,670,692	)		$	1,003,474			$	-			$	-			$	-			$	-			$	-			$	-					$	(2,657,922	)				$	3,154,257
(RECEIPTS LESS DISBURSEMENTS)			-				-				-				-				-				-				-				-						-						-
CASH - END OF MONTH		$	6,717,825			$	1,003,474			$	-			$	6,209,254			$	14,228			$	1,304,340			$	150,222			$	1,000					$	15,409,639					$	15,409,639
*    COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)														FOR THE MONTH ENDED JANUARY 31, 2014				FOR THE MONTH ENDED December 31, 2013				FOR THE MONTH ENDED NOVEMBER 30, 2013				FOR THE PERIOD OCTOBER 15, 2013 THROUGH OCTOBER 31, 2013																CUMMULATIVE FILING TO DATE OCTOBER 15, 2013 THROUGH JANUARY 31, 2014
TOTAL DISBURSEMENTS														$	121,130,110			$	2,492,701			$	2,396,428			$	8,762,577															$	134,781,816
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS																			-				384,867				13,053																397,920
LESS: PAYMENT OF U.S. TRUSTEE FEES															13,325																												13,325
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e., from escrow accounts)															-				-				-				-																-
															-				-				-				-																-
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES														$	121,130,110			$	2,492,701			$	2,011,561			$	8,749,524															$	134,370,571

 

SAVIENT_MOR_1		FORM MOR-1 (04/07)

---

In re: Savient Pharmaceuticals, Inc., et al		Case No. 13-12680 (MFW)
Debtor		Reporting Period: January 1, 2014 - January 31, 2014

SPHI (13-12681): SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

 

		BANK ACCOUNT ACTIVITY FOR THE MONTH ENDED JANUARY 31, 2014						BANK ACCOUNT ACTIVITY FOR THE MONTH ENDED DECEMBER 31, 2013						BANK ACCOUNT ACTIVITY FOR THE MONTH ENDED NOVEMBER 30, 2013						BANK ACCOUNT ACTIVITY FOR THE PERIOD OCTOBER 15, 2013 THROUGH OCTOBER 31, 2013
		PNC						PNC						PNC						PNC
CASH BEGINNING OF MONTH		$	3,241,587					$	3,241,584					$	3,241,584					$	16,941,887
RECEIPTS
DIVIDENDS ON MONEY MARKET ACCOUNT			-						3						-						73
			-						-						-						-
TOTAL RECEIPTS		$	-					$	3					$	-					$	73
DISBURSEMENTS
TRANSFERS TO SAVIENT OPERATING ACCOUNT			-						-						-						13,700,356
BANK FEES			-						-						-						20
SHIPPING AND DELIVERY			-						-						-						-
TOTAL DISBURSEMENTS		$	-					$	-					$	-					$	13,700,376
NET CASH FLOW		$	-					$	3					$	-					$	(13,700,303)
(RECEIPTS LESS DISBURSEMENTS)			-						-						-						-
CASH - END OF MONTH		$	3,241,587					$	3,241,587					$	3,241,584					$	3,241,584
*  COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)		CURRENT MONTH JANUARY 31, 2014						CURRENT MONTH DECEMBER 31, 2013						FOR THE MONTH ENDED NOVEMBER 30, 2013						FOR THE PERIOD OCTOBER 15, 2013 THROUGH OCTOBER 31, 2013
TOTAL DISBURSEMENTS		$	-					$	-					$	-					$	13,700,376
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS			-						-						-						-
LESS: TRANSFERS BETWEEN ACCOUNTS			-						-						-						13,700,356
			-						-						-						-
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES		$	-					$	-					$	-					$	20

 

SPHI_MOR_1		FORM MOR-1 (04/07)

---

 

In re: Savient Pharmaceuticals, Inc., et al		Case No. 13-12680 (MFW)
Debtor		Reporting Period: January 1, 2014 - January 31, 2014

SAVIENT (13-12680): BANK RECONCILIATIONS

 

																																				PNC - Letter of Credit						PNC - Letter Of Credit
						PNC						PNC Lockbox						Fidelity						Wells Fargo						Wells Fargo Utilities						(secure LOC)						(covers fees)						Petty Cash
				#						#						#						#						#						#						#						#
BALANCE PER BOOKS						$	6,717,825					$	1,003,474					$	-					$	6,209,254					$	14,228					$	1,304,340					$	150,222					$	1,000
BANK BALANCE						$	6,766,660					$	1,003,474					$	-					$	6,209,254					$	14,228					$	1,304,340					$	150,222					$	-
(+) DEPOSITS IN TRANSIT (ATTACH LIST)							-						-						-						-						-						-						-						-
(-) OUTSTANDING CHECKS (ATTACH LIST)							(48,835	)					-						-						-						-						-						-						-
OTHER (ATTACH EXPLANATION)							-						-						-						-						-						-						-						-
ADJUSTED BANK BALANCE *						$	6,717,825					$	1,003,474					$	-					$	6,209,254					$	14,228					$	1,304,340					$	150,222					$	-
* Adjusted bank balance must equal
balance per books
DEPOSITS IN TRANSIT				Date			Amount			Date			Amount			Date			Amount			Date			Amount			Date			Amount			Date			Amount			Date			Amount			Date			Amount
NONE
CHECKS OUTSTANDING				Ck. #			Amount			Ch. #			Amount			Ch. #			Amount			Ck. #			Amount			Ck. #			Amount			Ck. #			Amount			Ck. #			Amount			Ck. #			Amount
Total Outstanding Checks						$	48,835

 

Savient MOR_1a		FORM MOR-1a (04/07)

---

SPHI MOR_1a		FORM MOR-1a (04/07)

 

 

In re: Savient Pharmaceuticals, Inc., et al		Case No. 13-12680 (MFW)
Debtor		Reporting Period: January 1, 2014 - January 31, 2014

SPHI (13-12681): BANK RECONCILIATIONS

 

				PNC
				#
BALANCE PER BOOKS						$		3,241,587
BANK BALANCE						$		3,241,587
(+) DEPOSITS IN TRANSIT (ATTACH LIST)								-
(-) OUTSTANDING CHECKS (ATTACH LIST)								-
OTHER (ATTACH EXPLANATION)								-
ADJUSTED BANK BALANCE *						$		3,241,587
* Adjusted bank balance must equal
balance per books
DEPOSITS IN TRANSIT				Date				Amount
NONE
CHECKS OUTSTANDING				Ck. #				Amount
NONE

---

MOR-1a (Addendum)

Savient (13-12680): Open Bank Accounts as of January 31, 2014

 

Account number		Bank		Type		Book Balance
xxxxxx9201		Wells Fargo		U.S. Treasury Money Market Fund		$	6,209,254
xxxxxx5904		Wells Fargo		Utilities (Bankruptcy account)		$	14,228
xxxxxx5687		PNC		Savient Inc Operating Account		$	6,717,825
xxxxxx1019		PNC		AR Lockbox		$	1,003,474
xxxxxx2019		PNC		Letter of Credit (Secure LOC)		$	1,304,340
xxxxxx2548		PNC		Letter of Credit (Covers fees)		$	150,222

---

MOR-1a (Addendum)

SPHI (13-12681): Open Bank Accounts as of January 31, 2014

 

Account number		Bank		Type		Book Balance
xxxxxx6418		PNC		SPHI Operating Account		$	3,241,587

---

In re: Savient Pharmaceuticals, Inc., et al				Case No. 13-12680 (MFW)
Debtor				Reporting Period: January 1, 2014 - January 31, 2014
		SAVIENT (13-12680): SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

 

Payee

Amount

Check

Amount Paid

Cumulative-To-Date

Period Covered

Approved

Payor

Number

Date

Fees

Expenses

Fees

Expenses

Mary Bordeaux Consulting

10/15-10/31/2013

N/A

Savient Pharmaceuticals, Inc.

67595

11/21/2013

600

-

-

-

Mary Bordeaux Consulting

11/1-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

67651

12/18/2013

1,000

-

-

-

Mary Bordeaux Consulting

12/1-12/31/2013

N/A

Savient Pharmaceuticals, Inc.

67724

1/9/2014

800

2,400

-

The Garden City Group,

Advance

N/A

Savient Pharmaceuticals, Inc.

Wire

11/4/2013

63,400

6,600

-

-

The Garden City Group,

Advance

N/A

Savient Pharmaceuticals, Inc.

Wire

11/5/2013

18,000

7,000

-

-

The Garden City Group,

Advance

N/A

Savient Pharmaceuticals, Inc.

Wire

12/3/2013

80,000

-

-

-

The Garden City Group,

10/15-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

1/3/2014

288,234

57,006

449,634

70,606

Weiss, Rifkind,

10/14-10/31/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

11/19/2013

95,901

1,878

-

-

Weiss, Rifkind,

11/1-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

12/23/2013

189,132

5,669

Weiss, Rifkind,

12/1-12/31/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

1/27/2014

237,592

4,751

522,625

12,298

Maples and Calder

11/1-11/29/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

12/18/2013

14,732

-

14,732

-

Shannon, Gracy and Ratlif

10/15-10/26/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

12/18/2013

564

68

-

-

Shannon, Gracy and Ratlif

11/1-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

67736

1/9/2014

1,595

141

2,159

209

The Pine Hill Group

10/15-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

12/13/2013

62,530

-

-

-

The Pine Hill Group

12/1-12/14/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

12/18/2013

15,263

-

-

-

The Pine Hill Group

12/15/2013-1/17/2014

N/A

Savient Pharmaceuticals, Inc.

Wire

1/9/2014

28,788

-

-

-

The Pine Hill Group

1/1-1/17/2014

N/A

Savient Pharmaceuticals, Inc.

Wire

1/21/2014

4,625

-

-

-

The Pine Hill Group

1/20-1/24/2014

N/A

Savient Pharmaceuticals, Inc.

Wire

1/30/2014

5,828

-

117,033

-

Cole, Schotz, Meisel, Forman & Leonard, P.A.

10/14-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

1/28/2014

284,120

2,514

284,120

2,514

Deloitte Tax LLP

10/14-11/25/2013

N/A

Savient Pharmaceuticals, Inc.

67710

1/9/2014

7,500

300

Deloitte Tax LLP

11/25-12/16/2013

N/A

Savient Pharmaceuticals, Inc.

67710

1/9/2014

18,670

747

26,170

1,047

Joele Frank Wilkinson Brimmer

10/11-10/31/2013

N/A

Savient Pharmaceuticals, Inc.

67719

1/9/2014

25,772

6,219

Joele Frank Wilkinson Brimmer

11/01-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

67719

1/9/2014

5,101

385

Joele Frank Wilkinson Brimmer

12/01-12/31/2013

N/A

Savient Pharmaceuticals, Inc.

67756

1/17/2014

21,694

9,064

52,567

15,667

Kaufman Dolowich & Voluck, LLP

10/14-10/31/2013

N/A

Savient Pharmaceuticals, Inc.

67720

1/9/2014

2,075

Kaufman Dolowich & Voluck, LLP

11/01-11/22/2013

N/A

Savient Pharmaceuticals, Inc.

67720

1/9/2014

4,171

6,246

Lowenstein Sandler, LLP

10/14-10/31/2013

N/A

Savient Pharmaceuticals, Inc.

67723

1/9/2014

1,851

Lowenstein Sandler, LLP

11/1-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

67723

1/9/2014

2,897

Lowenstein Sandler, LLP

12/1-12/31/2013

N/A

Savient Pharmaceuticals, Inc.

67783

1/31/2014

131

4,879

Skadden, Arps, Slate, Meagher & Flom LLP

10/14-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

1/28/2014

1,185,074

19,552

1,185,074

19,552

Sterne, Kessler, Goldstein, Fox

11/1-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

67738

1/9/2014

1,958

1,958

Young Conaway Stargatt & Taylor, LLP

10/14-11/30/2013

N/A

Savient Pharmaceuticals, Inc.

Wire

1/14/2014

27,001

616

27,001

616

 

SAVIENT MOR_1b		FORM MOR-1b (04/07)

---

 

In re: Savient Pharmaceuticals, Inc., et al				Case No. 13-12680 (MFW)
Debtor				Reporting Period: January 1, 2014 - January 31, 2014

                        SPHI (13-12681): SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

 

Amount

Check

Amount Paid

Year-To-Date

Payee

Period Covered

Approved

Payor

Number

Date

Fees

Expenses

Fees

Expenses

No professional fee payments were made by the Debtor during the Reporting Period 1/1/14 through 1/31/14

 

SPHI MOR_1b		FORM MOR-1b (04/07)

---

 

In re: Savient Pharmaceuticals, Inc., et al		Case No. 13-12680 (MFW)
Debtor		Reporting Period: January 1, 2014 - January 31, 2014

SAVIENT (13-12680): STATEMENT OF OPERATIONS

(Income Statement)

 

REVENUES		For The Month Ended January 31, 2014				Cumulative Filing to Date October 15, 2013 Through January 31, 2014
Gross Revenues		$	1,638,489			$	10,307,196
Less: Gross-to-Net Adjustments			261,707				3,430,184
Net Revenue		$	1,376,782			$	6,877,012
COST OF GOODS SOLD							-
Beginning Inventory		$	1,037,458			$	4,516,751
Add: Purchases			-				-
Add: Cost of Labor			-				-
Add: Other Costs (attach schedule)			-				-
Less: Ending Inventory		$	-			$	3,308,559
Change in Inventory			1,037,458				1,208,192
Reclass Sales to Gain/Loss			(1,012,971)
							-
Add: Royalties (MVP & DUKE)			-				451,915
Add: Royalties (Office of the Chief Scientist of Israel)			-				177,122
Add: Management fee allocation to COGS			-				93,375
Add: Stability testing			-				79,331
Add: Distribution fees			16,787				75,982
Cost of Goods Sold		$	41,274			$	1,072,946
Gross Profit		$	1,335,508			$	5,804,066
OPERATING EXPENSES							-
Research and Development Related Expenses:							-
Investigator grants		$	-			$	150,000
QC & Stability testing			-				60,360
CRO costs			-				111,312
Pharmacovigilance			-				54,744
Process development and Improvement			-				23,878
IP Related			1,479				12,836
Central labs			2,194				8,958
REMS Communication and assessment			-				7,590
Publications			1,969				6,891
Research			1,407				1,407
Total Research and Development Related Expenses		$	7,049			$	437,976
						$	-
Selling and Marketing Related Expenses:							-
Pricing and reimbursement		$	3,425			$	171,166
Exhibit booth			-				69,019
Speakers programs			-				52,882
Maketing and other promotional activity			16,016				61,261
Medical meetings and symposia			-				38,167
Medical education			7,485				26,193
Market research			-				5,585
Publications			-				78
Total Selling and Marketing Related Expenses		$	26,926			$	424,351
						$	-
General and Administrative Related Expenses:							-
Compensation and related benefits and taxes		$	925,663			$	3,820,261
Insurance (amortization of prepaid insurance)			225,020				810,143
Share-based compensation (SFAS 123-R expense)			87,000				653,522
Sales force commissions			-				351,582
Occupancy			119,181				425,083
Travel and entertainment			18,443				235,641
Accrued Board of Directors’ cash payments & meeting fees			13,000				173,054
Outside consulting services			21,481				137,126
Corporate communications and investor relations			33,055				118,554
Legal			412				76,975
Licenses and information			7,801				58,090
Communications (Utilities)			6,892				46,218
General office expenses and office supplies			34,390				53,848
Postage and Shipping			2,072				6,041
Total General and Administrative Related Expenses:		$	1,494,410			$	6,966,138
Total Operating Expenses Before Depreciation		$	1,528,385			$	7,828,465
Depreciation and amortization			33,323				110,582
Net Loss Before Other Income & Expenses		$	(226,200)			$	(2,134,981)
							-
OTHER INCOME AND (EXPENSES)							-
Dividend income		$	-			$	699
Interest Expense on capital leases			-				(2,488)
Bank charges			(11,812)				(14,302)
Net Profit (Loss) Before Reorganization Items		$	(238,012)			$	(2,151,072)
REORGANIZATION ITEMS							-
Proceed from Sale to Crealta		$	(116,282,138)			$	(116,282,138)
Distribution to Noteholders		$	116,538,950			$	124,538,950
Professional Fees			5,509,636				10,506,916
Cure Cost			(2,393,690)				(2,393,690)
Accrual Adjustments (Changes in estimates)			(901,303)
U. S. Trustee Quarterly Fees			13,325				13,325
Interest Earned on Accumulated Cash from Chapter 11 (see continua			-				-
Gain (Loss) from Sale of Equipment			(3,046,863)				(3,046,863)
Total Reorganization Expenses		$	(562,083)			$	12,435,197
Income Taxes							-
Net Profit (Loss)		$	324,071			$	(14,586,269)

*“Insider” is defined in 11 U.S.C. Section 101(31).

 

SAVIENT_MOR_2		FORM MOR-2 (04/07)

---

In re: Savient Pharmaceuticals, Inc., et al				Case No. 13-12680 (MFW)
Debtor				Reporting Period: January 1, 2014 - January

SPHI (13-12681): STATEMENT OF OPERATIONS

(Income Statement)

 

REVENUES		For The Month Ended January 31, 2014				Cumulative Filing to Date October 15, 2013 Through January 31, 2014
NOT APPLICABLE		$	-			$	-
						$	-
COST OF GOODS SOLD							-
NOT APPLICABLE		$	-			$	-
						$	-
OPERATING EXPENSES (NONE NOTED FOR THE CURRENT PERIOD)							-
						$	-
General and Administrative Related Expenses:							-
Compensation and related benefits and taxes		$	-			$	-
Share-based compensation			-				-
Accrued sales commissions (SFAS 123-R expense)			-				-
Insurance (Amortization of prepaid insurance)			-				-
Travel and entertainment			-				-
Occupancy			-				-
Outside consulting services			-				-
General office expenses and office supplies			-				-
Accrued Board of Directors’ cash payments			-				-
Communications (Utilities)			-				-
Legal expenses			-				-
Corporate communications and investor relations			-				-
Total General and Administrative Related Expenses:		$	-			$	-
Total Operating Expenses Before Depreciation		$	-			$	-
Depreciation and amortization			-				-
Net Loss Before Other Income & Expenses		$	-			$	-
							-
OTHER INCOME AND (EXPENSES)							-
Dividend income		$	-			$	76
Interest Expense on capital leases			-				-
Bank charges			-				(20	)
Net Profit (Loss) Before Reorganization Items		$	-			$	56
REORGANIZATION ITEMS							-
Impairment of intercompany note receivable from Parent (Savient)		$	-			$	13,700,356
			-				-
Total Reorganization Expenses		$	-			$	13,700,356
Income Taxes			-				-
Net Profit (Loss)		$	-			$	(13,700,300	)

 

*“Insider” is defined in 11 U.S.C. Section 101(31).		-

 

SPHI_MOR 2		FORM MOR-2 (04/07)

---

In re: Savient Pharmaceuticals, Inc., et al				Case No. 13-12680 (MFW)
Debtor				Reporting Period: January 1, 2014 - January 31, 2014

SAVIENT (13-12680): BALANCE SHEET

 

ASSETS		BOOK VALUE AT JANUARY 31, 2014				BOOK VALUE ON PETITION DATE
CURRENT ASSETS
Cash and cash equivalents
Petty cash		$	1,000			$	1,000
PNC Bank business operating account			6,717,825				4,207,573
PNC AR Lockbox			1,003,474
Wells Fargo utilities account			14,228				-
Fidelity U.S. Treasury money market account			-				383,689
Wells Fargo money market account			6,209,254				3,169,442
PNC Letter of Credit (Acct # 31900362019 - Secure the LOC)			1,304,340				1,304,340
PNC Letter of Credit (Acct #31800362548 - Covers LOC Fees)			150,222				150,222
Total cash and cash equivalents		$	15,400,343			$	9,216,266
Short-term investments
Wells Fargo CD Portfolio		$	-			$	3,039,116
Total short-term investments		$	-			$	3,039,116
							-
Accounts receivable (Net)		$	6,010,810			$	7,088,730
Inventories (Net)		$	-			$	1,208,192
Prepaid expenses and other current assets
Prepaid D&O insurance		$	2,275,700			$	2,603,465
Professional retainers			943,243				1,552,562
Other receivables non-trade			291,406				622,746
Prepaid-other			108,707				313,115
Prepaid-other insurance			119,511				221,089
Prepaid rent			9,667				65,698
Prepaid marketing costs (YNF- Co-pay program)			-				83,424
Prepaid product liability insurance			-				96,338
Advances to employees			600				600
Total prepaid expenses and other current assets		$	3,748,834			$	5,559,037
TOTAL CURRENT ASSETS		$	25,159,987			$	26,111,341
PROPERTY AND EQUIPMENT
Office equipment		$	656,229			$	656,229
Other furniture and fixtures			6,005				6,005
Leasehold Improvements			1,496,216				1,496,216
Capital lease assets			212,770				212,770
Less Accumulated Depreciation			(804,099	)			(684,933	)
TOTAL PROPERTY & EQUIPMENT		$	1,567,121			$	1,686,287
OTHER ASSETS
Investment in wholly-owned subsidiary (Savient Pharma Holdings, SPHI)		$	147,259,564			$	147,259,564
Investment in wholly-owned subsidiary (Savient Pharma Ireland, Limited, SPIL)			134				134
TOTAL OTHER ASSETS		$	147,259,698			$	147,259,698
TOTAL ASSETS		$	173,986,806			$	175,057,326

 

SAVIENT_MOR_3		FORM MOR-3 (04/07)

---

LIABILITIES AND OWNER EQUITY		BOOK VALUE AT JANUARY 31, 2014				BOOK VALUE ON PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts payable		$	30			$	12,972
Accrued expenses
Accrued professional fees		$	7,299,913			$	-
Accrued employee expense reimbursement			-				13,093
Other accrued postpetition liabilities (see attached schedule)			102,005				-
Total accrued expenses		$	7,401,918			$	13,093
Other liabilities not subject to compromise
Accrued royalties payable		$	-			$	943,189
Deferred revenue			-				936,535
Reserve for returns			369,631				407,355
Reserve for chargeback’s			32,099				264,528
Reserve for Medicaid claims			305,448				241,584
Capital lease liability			-				185,672
Accrued distribution fees			59,498				44,528
Accrued Delaware franchise taxes			38,920				58,380
Accrued sales and use taxes			3,424				-
Accrued payroll taxes (Puerto Rico)			-				-
Total other liabilities not subject to compromise		$	809,020			$	3,081,771
TOTAL LIABILITIES NOT SUBJECT TO COMPRMISE (POSTPETITION LIABILITIES)		$	8,210,968			$	3,107,836
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Accounts payable		$	849,096			$	1,402,335
Accrued expenses
Other accrued pre-petition liabilities (see attached schedule)		$	1,239,586			$	1,818,953
Total accrued expenses		$	1,239,586			$	1,818,953
Other liabilities subject to compromise
Senior Secured 2019 Notes		$	144,257,695			$	144,257,695
Subordinated Debt 2018 Convertible Notes			99,555,240				99,555,240
Intercompany loan payable to wholly owned subsidiary Savient Pharma Holdings, SPHI			29,204,944				15,504,588
Accrued Purchase commitment reserve			-				3,771,066
Accrued Severance liability			2,102,695				2,102,695
Warrant Liability			1,479,776				1,479,776
Accrued home office bonuses			1,370,749				1,370,749
Accrued Sales commissions			733,400				820,357
Embedded conversion features liability 2018 convertible notes			848,100				848,100
Accrued retention bonuses			821,030				821,030
Accrued vacation			-				281,395
Employee benefit related (flex spending liabilities)			-				50,597
Total other liabilities subject to compromise		$	280,373,629			$	270,863,288
TOTAL LIABILITIES SUBJECT TO COMPRIMISE (PRE-PETITION)		$	282,462,311			$	274,084,576
TOTAL LIABILITIES		$	290,673,279			$	277,192,412
OWNER EQUITY
Common Stock		$	736,949			$	736,949
Additional Paid-In Capital			401,417,969				400,739,096
Retained Earnings - Pre-Petition			(504,255,122)				(503,611,131)
Retained Earnings - Postpetition			(14,586,269)
NET OWNER EQUITY		$	(116,686,473)			$	(102,135,086)
TOTAL LIABILITIES AND OWNERS’ EQUITY		$	173,986,806			$	175,057,326

 

*“Insider” is defined in 11 U.S.C. Section 101(31).		-

 

SAVIENT_MOR_3		FORM MOR-3 (04/07)

---

In re: Savient Pharmaceuticals, Inc., et al				Case No. 13-12680 (MFW)
Debtor				Reporting Period: January 1, 2014 - January 31, 2014

SPHI (13-12681): BALANCE SHEET

 

ASSETS		BOOK VALUE AT JANUARY 31, 2014				BOOK VALUE ON PETITION DATE
CURRENT ASSETS
Cash and cash equivalents
PNC Bank business operating account			3,241,587				3,241,604
Fidelity U.S. Treasury money market account			-				13,700,283
Total cash and cash equivalents		$	3,241,587			$	16,941,887
TOTAL CURRENT ASSETS		$	3,241,587			$	16,941,887
TOTAL ASSETS		$	3,241,587			$	16,941,887
OWNER EQUITY
Common Stock		$	1			$	1
Additional Paid-In Capital			147,259,563				147,259,563
Retained Earnings - Pre-Petition			(130,317,677)				(130,317,677)
Retained Earnings - Postpetition			(13,700,300)				-
NET OWNER EQUITY		$	3,241,587			$	16,941,887
TOTAL LIABILITIES AND OWNERS’ EQUITY		$	3,241,587			$	16,941,887

 

SPHI_MOR_3		FORM MOR-3 (04/07)

---

In re: Savient Pharmaceuticals, Inc., et al		Case No. 13-12680 (MFW)
Debtor		Reporting Period: January 1, 2014 - January 31, 2014

SAVIENT (13-12680): STATUS OF POSTPETITION TAXES

All postpetition taxes were current as of January 31, 2014 and paid in the ordinary course by the Debtor

SUMMARY OF UNPAID POSTPETITION DEBTS

As reflected below, Debtor is current on all postpetition debts.

 

		Number of Days Past Due
		Current				0-30				31-60				61-90				Over 90				Total
Accounts Payable		$	30			$	-			$	-			$	-			$	-			$	30
Employee Expenses Payable (Concur)			-				-				-				-				-			$	-
Wages Payable			-				-				-				-				-				-
Taxes Payable			-				-				-				-				-				-
Rent/Leases-Building			-				-				-				-				-				-
Rent/Leases-Equipment			-				-				-				-				-				-
Secured Debt/Adequate Protection Payments			-				-				-				-				-				-
Professional Fees			-				-				-				-				-				-
Amounts Due to Insiders			-				-				-				-				-				-
Total Postpetition Debts		$	30			$	-			$	-			$	-			$	-			$	30

 

SAVIENT_MOR_4		FORM MOR-4 (04/07)

---

In re: Savient Pharmaceuticals, Inc., et al		Case No. 13-12680 (MFW)
Debtor		Reporting Period: January 1, 2014 - January 31, 2014

SPHI (13-12681): STATUS OF POSTPETITION TAXES

All postpetition taxes were current as of January 31, 2014 and paid in the ordinary course by the Debtor.

SUMMARY OF UNPAID POSTPETITION DEBTS

The Debtor is current on all postpetition debts.

 

SPHI_MOR_4		FORM MOR-4 (04/07)

---

In re: Savient Pharmaceuticals, Inc., et al		Case No. 13-12680 (MFW)
Debtor		Reporting Period: January 1, 2014 - January 31, 2014

SAVIENT (13-12680): ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

 

Accounts Receivable Reconciliation						BOOK VALUE AT   JANUARY 31, 2014				BOOK VALUE AT  DECEMBER 31, 2013				BOOK VALUE AT  NOVEMBER 30, 2013				BOOK VALUE AT  OCTOBER 31, 2013
Total Accounts Receivable at the beginning of the reporting period						$	7,434,952			$	7,372,339			$	7,116,283				7,045,577
+ Amounts billed during the period							1,162,843				3,365,207				2,570,042				2,177,755
- Amounts collected during the period							(2,168,659	)			(2,294,795	)			(1,243,215	)			(1,455,908	)
- Discounts and Chargeback’s							(457,211	)			(953,422	)			(1,036,869	)			(600,708	)
- Return Credits							(5,037	)			(19,364	)			(2,551	)			(20,378	)
- Prompt Pay Discounts							(29,916	)			(35,013	)			(31,351	)			(30,055	)
Total Accounts Receivable at the end of the reporting period						$	5,936,972			$	7,434,952			$	7,372,339			$	7,116,283
- Provision for discounts							-				(49,626	)			(34,907	)			(59,679	)
+ Accounts receivable other							73,838				67,200				47,612				22,795
Total Accounts Receivable, Net at the end of the reporting period						$	6,010,810			$	7,452,526			$	7,385,044			$	7,079,399
Accounts Receivable Aging						BOOK VALUE AT JANUARY 31, 2014				BOOK VALUE AT DECEMBER 31, 2013				BOOK VALUE AT NOVEMBER 30, 2013				BOOK VALUE AT OCTOBER 31, 2013
0 - 30 days old						$	2,815,441			$	4,635,949			$	5,679,858				5,672,068
31 - 60 days old							315,136				1,177,031				263,279				-
61 - 90 days old							1,125,299				187,404				6,427				21,440
91+ days old							1,681,094				1,434,568				1,422,775				1,422,775
Total Accounts Receivable at the end of the reporting period						$	5,936,971			$	7,434,952			$	7,372,339			$	7,116,283
- Provision for discounts							-				(49,626	)			(34,907	)			(59,679	)
+ Accounts receivable other							73,838				67,200				47,612				22,795
Total Accounts Receivable, Net at the end of the reporting period						$	6,010,809			$	7,452,526			$	7,385,044			$	7,079,399
DEBTOR QUESTIONNAIRE
Must be completed each month						Yes				No
1.		Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.					X*
2.		Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.									X
3.		Have all postpetition tax returns been timely filed? If no, provide an explanation below.					X
4.		Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.					X
5.		Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.					X**

*Assets were sold outside the ordinary course of business pursuant to Court orders [Docket Nos. 251, 332].

**PNC AR Lockbox was opened on January 10, 2014, to segregate receipts on current accounts receivable balances from normal operating cash.

 

SAVIENT_MOR_5		FORM MOR-5 (04/07)

---

In re: Savient Pharmaceuticals, Inc., et al		Case No. 13-12680 (MFW)
Debtor		Reporting Period: January 1, 2014 - January 31, 2014

SPHI(13-12681): ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

 

Accounts Receivable Reconciliation				Amount
NOT APPLICABLE				$	-
Accounts Receivable Aging				Amount
NOT APPLICABLE				$	-
DEBTOR QUESTIONNAIRE
Must be completed each month				Yes				No
1.		Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.						X
2.		Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.						X
3.		Have all postpetition tax returns been timely filed? If no, provide an explanation below.			X
4.		Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.			X
5.		Has any bank account been opened during the reporting period? If yes, provide						X
		documentation identifying the opened account(s). If an investment account has
		been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.

 

SPHI_MOR_5		FORM MOR-5 (04/07)