To Our Valued Customers,
As we shared earlier this year, Akorn has been working to execute a sale process that positions our business for long-term success. On May 20, 2020, we took decisive action to achieve this goal – Akorn filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code and will use the process and legal protections provided by Chapter 11 to execute the sale of our business.
Operating Our Business and Meeting Obligations to Customers
Now and throughout the Chapter 11 process, we expect to operate our business as usual, meeting our go-forward commitments to our associates, customers, partners and regulators. Our relationship with you will not be impacted by this announcement. Nothing about this announcement affects our ability to develop, manufacture and deliver our products.
We know that you and the patients you serve depend on the products Akorn provides, and we have taken all of the necessary steps to ensure we can uphold our commitments to you throughout this process. All of our contractual rebate programs and other contractual obligations are continuing as usual.
Our Sale Process and Next Steps
Following a thorough marketing and negotiation process, we announced a purchase agreement with certain of our existing lenders whereby they will serve as the foundational bidder in our court-supervised sale process. Briefly, the next step in this process is to collect any additional bids from buyers other than our existing lenders. If any bids exceed the value of our existing lenders’ bid, the “highest and best” bid will be chosen as the winning bid to be reviewed and approved by the Court. We will then work toward emergence from Chapter 11 under a new ownership structure, which we are hoping to complete in the third quarter of 2020.
If you have any questions, please feel free to reach out directly to your normal contact. We are committed to keeping customers informed throughout this process and will be providing updates as we are able.
Thank you for your support throughout our sale process and these challenging times. We are confident that this decisive action will allow us to be an even stronger partner for you in the future, and we look forward to working together as we emerge from this process even better positioned to improve patients’ lives.
Doug Boothe, CEO
No, our Chapter 11 filing should not impact our relationship with you in any way. We do not expect any disruptions to our services as a result of this process. You should continue to work with your Akorn contacts and place orders as usual with us.
Nothing about this announcement affects our ability to develop, manufacture and deliver our products and we continue to invest in our pipeline throughout this process. Moreover, we expect we will be even better positioned to grow and continue to deliver safe, effective products to our customers as a result of the actions we are taking.
We have taken the necessary steps to ensure we are able to meet our commitments to you, our customers, throughout this process. Looking ahead, we expect to emerge from this process as a stronger partner for you moving forward.
Akorn is fully committed to keeping you informed throughout this process. Should you have any questions, please direct them to your usual company contact.