Just since 2017, Akorn has been through a terminated sale, data tampering allegations, FDA warning letters and more. Now, it’s declaring bankruptcy to sell itself to its creditors.
Through a Delaware bankruptcy filing Wednesday, Akorn plans to “execute an in‑court sale” with its lenders lodging a "stalking horse” offer. While Akorn plans to sell to those lenders, other potential buyers will have the opportunity to bid.
Meanwhile, the company plans to continue normal operations throughout the bankruptcy process, and it’s secured $30 million in financing to keep its operations running. The company hopes to complete the process by the third quarter of this year.
It’s the latest twist in a tough three-year stretch for the company after it agreed to sell to Fresenius in April 2017. In May 2018, Fresenius said it had uncovered “blatant fraud at the very top level” of Akorn and sought to abandon the $4.3 billion buyout. A legal fight followed, but a judge eventually freed Fresenius from the buyout deal in October 2018.
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Since then, Akorn has been renegotiating its debt, and the FDA has reprimanded the company for problems at its factories in Lake Forest, Illinois, and Amityville, New York.
Akorn’s bankruptcy filing lists up to $10 billion in debt and up to $10 billion in assets.