The bond-holders, who were promised a 100% return if the company survived, also have a 15% interest in Aortech's ultimate value.
Chairman Bill Brown, the former Edinburgh-based fund manager, said Aortech was moving towards becoming a pure IP (intellectual property) company, having transferred its US manufacturing facility to St Jude Medical. The company is temporarily retaining a small-batch capability, and manufacturing contract discussions are under way with a "mid-sized US polymer and medical device component manufacturer" .
Mr Brown said AorTech's revenue would now come from manufacturing share together with licence fees, and IP would be protected.
Several licences signed in prior years were now maturing, and "the potential income forecast by the licensees could result in significant royalties in future years for the group".
Mr Brown said: "Although the returns on the loan notes were attractive, the capital … enabled AorTech to continue trading and allowed us to reach a negotiated settlement in our dispute with St Jude. Without the loan note monies, AorTech would have undoubtedly failed."