Isolagen, Inc. Announces Receipt of Interim Order from Bankruptcy Court Approving ...( EXTON Pa. June 19 /- Isolagen(TM) Inc...)

EXTON, Pa., June 19 /PRNewswire/ -- Isolagen(TM), Inc. announced on June 16, 2009, that the Company and Isolagen Technologies, Inc., the Company's wholly owned subsidiary, each filed a voluntary petition for reorganization under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware in Wilmington. The Company and Isolagen Technologies intend to continue to manage and operate their business as debtors in possession pursuant to the Bankruptcy Code.

On June 17, 2009, the Bankruptcy Court approved a motion for an interim order for debtor-in-possession financing with certain lenders (the "DIP Lenders") composed of a loan facility in an aggregate principal amount of up to $2,750,000 (subject to increase at the discretion of the DIP Lenders) (the "DIP Facility"), of which up to $1,000,000 will be available to the Debtors from the date of the interim order until the entry of a final order. The proceeds from the DIP Facility will be used, among other things, to provide the Debtors with working capital for general corporate purposes and for expenses associated with the bankruptcy proceeding. The DIP Facility will accrue interest at the rate of 10% per annum (with a default rate of 18%) and will mature on the date a plan of reorganization is approved by the Bankruptcy Court, subject to acceleration upon certain event of defaults set forth in the DIP Facility agreement. The maturity date of the DIP Facility will also accelerate if a final order of the Bankruptcy Court has not been entered within 30 days of the interim order date. As indicated in the interim order, through the final DIP order process the DIP Lenders will seek "priming" liens to the extent that any parties possess secured claims against the Debtors.

In connection with the Debtor's initial bankruptcy filing, the Debtors have entered into a restructuring agreement with (a) a large majority of the holders (the "
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