On May 20, 2020, Akorn, Inc. and its 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 is a decisive, positive step for Akorn, one that we have been 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.
Akorn plans to continue to operate as usual throughout the duration of the Chapter 11 and sale process, including meeting its contractual obligations and making payments to vendors. Associates should see no changes in their day-to-day roles and responsibilities, and the Company will continue to develop, manufacture and deliver its products to customers.
The Company is working to complete the sale process in the third quarter of 2020 and emerge as a more vibrant company, even better positioned to improve patients’ lives through the quality, availability and affordability of its products.
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
On May 20, 2020, Akorn announced that we filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code to execute a sale of our business. This process and the legal protections provided by Chapter 11 will help address our litigation and best position Akorn for long-term success.
No. On the contrary, the Chapter 11 process was specifically designed to allow companies like Akorn to continue to operate as usual while we work to achieve our financial goals. That is exactly what we intend to do.
The goal is to execute a sale of our business in order to address our litigation and best position the business for long-term success under a new ownership structure. The Chapter 11 process is a tool that will allow Akorn to separate litigation overhang from our most valuable assets – our products, our people, our manufacturing facilities and our knowledge. We expect to complete the sale and emerge as a more vibrant company that is even better positioned to improve patients’ lives through the quality, availability and affordability of our products.
This announcement will not impact day-to-day operations at Akorn. We expect to continue to operate our business as usual, meeting our go-forward commitments to our associates, customers, partners and regulators.
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.
Following our Chapter 11 filing, NASDAQ has indicated that our stock will be delisted from the exchange before market open on June 1, 2020. We expect that our stock will continue to trade over-the-counter until our business emerges from Chapter 11, at which time we will be under a new ownership structure and current equity interests will be cancelled.
Trading in our securities is highly speculative and poses substantial risks as there may be limited or no recovery for holders of our common stock at the conclusion of the court-supervised sale process.