Lannett Co. said it plans to file for bankruptcy with a restructuring agreement that will help the generic-pharmaceutical company cut $511 million in debt, WSJ Pro Bankruptcy reported. Trevose, Pa.-based Lannett said yesterday it plans to file for chapter 11 in the U.S. Bankruptcy Court in Wilmington, Del., to restructure its debt with secured lenders through a debt-for-equity swap, a deal that has support from holders of more than 80% of its senior secured notes due in 2026 and all second-lien lenders, according to a press release. The company will hand over control to its secured lenders as a result of the restructuring, Lannett said. The company had roughly $750 million in total liabilities as of late December, according to a regulatory filing. Lannett in February raised its revenue guidance for fiscal year 2023 to a range of $285 million to $305 million, while reporting a narrower second-quarter loss of 88 cents per share. In early April, Lannett said “continued competitive pressures” were among factors that triggered its negotiation with key secured creditors about a balance-sheet restructuring. At that time, the company also said it was skipping an interest payment on its unsecured convertible notes. That would trigger a debt default if the company fails to make the payment within 30 days.
