KV Pharmaceutical Co.(fka KVPHQ)

[Banks100]

K-V's bankruptcy attorney told Dow Jones that the drug company isn't worried that the rejecting votes will prevent the judge from confirming the plan. The company is disputing the rejecting claims and said all other creditors in the class voted to accept the plan.

K-V's plan proposes to pay senior bondholders owed more than $230 million in full. Junior bondholders will own the company following its exit from Chapter 11, as they have agreed to backstop a $238 million rights offering and directly purchase $37 million of K-V's new stock.

Unsecured creditors would share in $10.25 million under the plan, which wipes out K-V's current shareholders.

Prior to taking up the plan at Wednesday's hearing, the bankruptcy court is expected to rule on whether a group of senior bondholders is owed post- bankruptcy interest.