Pharmaceutical maker Theragen Inc. defaulted on outstanding Series 2005 bonds last week as Bank of Oklahoma NA, the trustee for the debt, announced that the company did not meet principal and interest payments due Nov. 1.
The New Jersey Economic Development Authority sold $3.5 million of bonds on behalf of Theragen in 2005. Backing the bonds are two mortgage liens and the borrower’s pledge to pay the debt, according to the official statement.
Theragen’s chief executive officer and president is Bharat Patel. He and his wife, Pragna Patel, are individual guarantors of the Series 2005 bonds. Bharat Patel is also president of Neil Laboratories Inc., the corporate guarantor of the debt.
The Nov. 1 payment to investors included $100,000 in principal and $129,000 in interest costs, according to the OS. The debt is not rated. The bonds were sold to help finance the acquisition and renovation of a 69,000-square-foot facility in East Windsor and support equipment and machinery purchases.
The Bank of Oklahoma directed questions regarding the default payment to Bergen Capital Inc., the underwriter of the debt. Bergen declined to comment.
A message for Bharat Patel at Theragen’s offices was not returned.