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Lannett Gears Up For Chapter 11 Bankruptcy, Lenders To Take Ownership

Debt-Equity Swap Set To Wipe Out More Than $500m Of Total Indebtedness

 
• By Dean Rudge

Lannett had cautioned that a major restructuring was likely as its operations and balance sheet faltered under a massive debt pile – now that has become a reality, under a proposed plan that will hand the company keys to lenders.

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• Source: Shutterstock

Foundering manufacturer Lannett expects soon to file for Chapter 11 bankruptcy protection in the US, after announcing a prepackaged restructuring support agreement with its variety of creditors intended to erase more than half-a-billion dollars from the company’s total debt pile.

Following completion of the proposed transaction, the Philadelphia-based firm’s secured lenders will own Lannett’s equity and the

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