Generic drugmaker Lannett Company Inc filed for bankruptcy after saying it reached a tentative deal to hand control of the business to lenders and cut debt.
(Bloomberg) — Generic drugmaker Lannett Company Inc filed for bankruptcy after saying it reached a tentative deal to hand control of the business to lenders and cut debt.
The Trevose, Pennsylvania-based firm listed an estimated $100 million to $500 million worth of assets and estimated liabilities in the $500 million to $1 billion range, according to a filing submitted in Delaware. Lannett said it expected to operate normally while undergoing the Chapter 11 process, and it had enough liquidity to operate.
On May 1, Lannett said it struck a deal with holders of more than 80% of its 7.75% senior secured notes due 2026 and all lenders under its second-lien loan facility to restructure the company’s balance sheet through a debt for equity swap, according to public filings. The accord will help the company slash more than $500 million in debt.
Lannett said it entered into negotiations with key stakeholders as it faced increased competitive pressure on its portfolio of generic drug products.
“Commencing our Chapter 11 cases is an important step toward strengthening our financial position, and we intend to move through this process quickly and without disruption for our customers and partners,” Chief Executive Officer Tim Crew was quoted a saying in a company statement.
–With assistance from Eduard Gismatullin.
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