Lannett Commences Prepackaged Chapter 11 Cases In U.S. Bankruptcy Court

(RTTNews) - Lannett Company Inc. (LCIN.PK) said it has commenced prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware to effectuate the transactions contemplated by the Restructuring Support Agreement announced on May 1, 2023.

The company said it reached the Restructuring Support Agreement with the significant support of key stakeholders, including holders of more than 80% of its Senior Secured Notes and 100% of its Second Lien Term Loan, seeking to significantly improve its financial position by eliminating about $597 million of funded debt, including $511 of secured debt, through conversion of the secured debt into equity in the newly reorganized Company.

The company expects the Chapter 11 cases to be expeditious, with emergence occurring within 45 days after the filing of the petitions.