DISTRESSED DAILY: Akorn’s Steep Price to Stave Off Default (1)

A bankruptcy filing may be the prescription for generic drugmaker Akorn Inc. if it can’t restructure its debt by February.

• Akorn’s future was cast in doubt when flaws were uncovered at two of its plants, upending a pending sale of the company. Its management and lenders extended through Feb. 7 a standstill agreement on its loan due April 2021, citing the need for more time to “address the company’s litigation-related liabilities.”
  • Those are the result of Fresenius SE backing out of a $4.3 billion takeover offer made in 2017, after expressing unease around Akorn’s quality controls and drug-testing methods.
  • Warning ...