Akorn Receives Court Approval of Sale to Lenders
LAKE FOREST, Ill., Sept. 2, 2020 /PRNewswire/ -- Akorn, Inc., a leading specialty pharmaceutical company, today announced that the United States Bankruptcy Court for the District of Delaware has approved its sale to the Company's existing lenders.
Doug Boothe, Akorn's President and Chief Executive Officer, commented, "We are pleased to have received Court approval for our sale, achieving a critical milestone that will allow us to move beyond this process under a new ownership structure in the coming weeks. I want to thank our lenders, associates, customers, and suppliers for their partnership and support throughout this process. With the backdrop of the COVID-19 pandemic, our mission of bringing pharmaceutical products to patients, caregivers, and hospitals is more important than ever, and we look forward to redoubling our focus on this vital work."
Akorn is working to finalize customary closing obligations and anticipates the sale will be completed in the next few weeks.
As has been the case throughout the Chapter 11 process, Akorn will continue its normal operations and meet commitments to its stakeholders. The Company looks forward to emerging as a more vibrant company, even better positioned to improve patients' lives through the quality, availability and affordability of its products.
Akorn, Inc. is a specialty pharmaceutical company engaged in the development, manufacture and marketing of multisource and branded pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois; Somerset, New Jersey; Amityville, New York; and Hettlingen, Switzerland that manufacture ophthalmic, injectable and specialty sterile and non-sterile pharmaceuticals. Additional information is available on Akorn's website at www.akorn.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes statements that may constitute "forward-looking statements," including those regarding the effects of COVID-19, as well as the Company's long-term business plan and outlook, the voluntary cases under chapter 11 ("Chapter 11") of title 11 of the United States Code (the "Bankruptcy Code") of Akorn, Inc. and its U.S. direct and indirect subsidiaries, the Company's ability to continue operating in the ordinary course and meet commitments while the Chapter 11 cases are pending, and the Company's ability to finalize closing obligations and complete the sale of some or all of its assets pursuant to Section 363 of the Bankruptcy Code (the "Sale") in the next few weeks or at all. When used in this release, the words "will," "expect," "continue," "believe," "seek," "anticipate," "estimate," "intend," "could," "would," "strives" and similar expressions are generally intended to identify forward-looking statements. These statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). A number of important factors could cause actual results of the Company and its subsidiaries to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to: (i) the Company's ability to consummate the Sale; (ii) potential adverse effects of the Chapter 11 cases on the Company's liquidity and results of operations; (iii) the Company's ability to obtain timely approval by the Court with respect to the motions filed in the Chapter 11 cases; (iv) objections that could protract the Chapter 11 Cases; (v) employee attrition and the Company's ability to retain senior management and other key personnel due to the distractions and uncertainties; (vi) the Company's ability to comply with the restrictions imposed by the terms and conditions of the DIP Facility and other financing arrangements; (vii) the Company's ability to maintain relationships with suppliers, customers, employees and other third parties and regulatory authorities as a result of the Chapter 11 cases; (viii) the effects of the Chapter 11 cases on the Company and on the interests of various constituents, including holders of the Company's common stock; (ix) the Court's rulings on the outcome of the Chapter 11 cases generally; (x) the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 cases; (xi) risks associated with third party motions in the Chapter 11 cases, which may interfere with the Company's ability to consummate the Sale; (xii) increased administrative and legal costs related to the Chapter 11 process; potential delays in the Chapter 11 process due to the effects of the COVID-19 virus; (xiii) other litigation and inherent risks involved in a bankruptcy process; and (xiv) such other risks and uncertainties outlined in the risk factors detailed in Part I, Item 1A, "Risk Factors," of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (as filed with the SEC on February 26, 2020), Part II, Item 1A, "Risk Factors," of the Company's Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2020 (as filed with the SEC on May 11, 2020) and June 30, 2020 (as filed with the SEC on August 7, 2020) and other risk factors identified from time to time in the Company's filings with the SEC. Readers should carefully review these risk factors, and should not place undue reliance on the Company's forward-looking statements. These forward-looking statements are based on information, plans and estimates at the date of this release. The Company undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
SOURCE Akorn, Inc.