Akorn Files For Bankruptcy

(RTTNews) - Akorn Inc. (AKRX), a specialty pharmaceutical company, said that it filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in United States Bankruptcy Court for the District of Delaware to execute an in-court sale of its business.

The Chapter 11 cases include Akorn and each of its U.S. subsidiaries. The company's entities in India and Switzerland are not included in the Chapter 11 filing, Akorn said in a statement.

The company said it has executed a Restructuring Support Agreement with lenders representing more than 75% of its secured debt.

As a result of negotiations, Akorn and certain of its existing lenders have agreed to a Stalking Horse Asset Purchase Agreement whereby the existing lenders will serve as the "stalking horse" bidder in the court-supervised sale of the business. Other buyers will continue to have the opportunity to improve on this bid for the company.

Akorn said it obtained consent to use cash collateral from all of its existing lenders and received commitments from certain of its lenders for $30 million in debtor-in-possession financing.

The company noted that it is working to complete the sale process in the third quarter of 2020.