Nasal spray maker Egalet Corp. filed for bankruptcy on Tuesday with a plan to turn over ownership of the Philadelphia-area business to bondholders and to another painkiller company, WSJ Pro Bankruptcy reported. The proposed deal, outlined in filings in U.S. Bankruptcy Court in Wilmington, Del., calls for Egalet’s unsecured bondholders to swap the $48.6 million that they are owed for 31.6 percent of the new equity in the reorganized company. They’re expected to recover 55 cents on the dollar of what they’re owed, according to the company’s plan disclosure statement. A group of existing senior bondholders, owed about $80 million, will also convert their debt into a 19.4% equity stake in the new company, a court filing says. The senior bondholders will also be issued $50 million in new notes. They are expected to recover 91 cents on the dollar, according to a court filing.
