Updated on September 2, 2020
On September 1, 2020, the United States Bankruptcy Court for the District of Delaware approved the sale of Akorn’s business to our existing lenders. This critical milestone will allow Akorn as you know it to move beyond the Chapter 11 process under new ownership. We are working to finalize customary closing obligations and anticipate the sale will be completed in the next few weeks.
As has been the case throughout the Chapter 11 process, Akorn will continue normal operations and meet commitments to our stakeholders. We look forward to emerging as a more vibrant company, even better positioned to improve patients’ lives through the quality, availability and affordability of our products.
On May 20, 2020, Akorn, Inc. and our U.S. subsidiaries filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in order to execute an in-court sale of the business while addressing litigation-related overhangs and best positioning the business for long-term success under new ownership.
This was a decisive, positive step for Akorn, one that we were able to achieve because of the underlying strength of our business and potential for growth. We look forward to separating legacy litigation and debt from the Company’s most valuable assets – our products, our people, our manufacturing facilities and our knowledge – so that we can move forward unencumbered by these liability exposures, under new ownership that believes in our future.
We are committed to keeping you informed throughout this process. This microsite has more information to answer your questions and will be updated as there is new information to share. If you have any other questions, please reach out to your usual Akorn contact.
Frequently Asked Questions
Our existing lenders will be the new owners of Akorn’s business once the sale is complete.
Following the Court’s approval of Akorn’s sale to our existing lenders, we are working to finalize customary closing obligations and anticipate the sale will be completed in the next few weeks.
Although the Court has approved our sale, we are still seeking approval of our Plan of Reorganization – which is a plan that maps out the wind-down of the estate that will be left behind after we close the sale to our existing lenders. This is not a pre-requisite to closing the sale and may continue after Akorn as you know it exits Chapter 11.
While Akorn stock may continue to trade over-the-counter until the conclusion of the Akorn debtors’ Chapter 11 proceeding, we do not expect any recovery for holders of common stock in the Chapter 11 process and those equity interests will be canceled upon the conclusion of the Chapter 11 process.
No. Akorn is fully committed to completing all of the actions described in our response to the FDA warning letters and 483 observations, as well as continuing to support our initiatives and lifecycle approach towards compliance.