Beleaguered Akorn Files For Bankruptcy
Pursues Chapter 11 Process After Defaulting On Term Loan
Akorn and its subsidiaries in the US have gone ahead with a Chapter 11 bankruptcy filing, paving the way for an in-court sale of the business and bringing the curtain down for now on the story of one of the hottest generic injectable properties of the last decade.
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Fresenius Kabi says a decision on damages stemming from its aborted takeover of troubled Akorn is expected imminently, but has underlined it will not reap enormous riches with a victory. Meanwhile, the German firm has just initiated Phase III trials for a key biosimilar candidate.
Facing soaring legal costs stemming from its failed merger with Fresenius Kabi and burdened by substantial debt, Akorn elected to put itself up for sale earlier this year in order to help repay lenders. But the company has now defaulted on an agreement with its creditors after no bidder stepped up to the plate.
Buried within its financial disclosure of a standstill agreement with creditors until 7 February, Akorn disclosed that it is considering whether to file for bankruptcy protection in the US.