- Akorn (NASDAQ:AKRX) drops 25% premarket in reaction to its filing for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code to execute an in‑court sale of its business while addressing litigation-related overhangs.
- In connection with the filing, the Company has executed a Restructuring Support Agreement with lenders representing more than 75% of its secured debt, who will serve as a "stalking horse" bidder in the sale process and provide additional liquidity to fund business operations during this process.
- Akorn has also received commitments from certain of its lenders for $30M in debtor-in-possession financing.
- The Chapter 11 cases include Akorn and each of its U.S. subsidiaries. Entities in India and Switzerland are not included.
- Sale process is expected to be completed in Q3.
- Updated press release
Akorn files for Chapter 11
This was corrected on 06/17/2020 at 3:45 PM. the lender support percentage reported in the article has been updated to 75%