Generic Drug Maker Teligent Files Bankruptcy, Plans Sale
(Bloomberg) -- Teligent Inc., a beleaguered generic drug maker, filed for court protection from creditors on Thursday with plans to sell itself.
The publicly traded company listed assets of as much as $100 million and liabilities of as much as $500 million in its bankruptcy petition. Buena, New Jersey-based Teligent manufactures injectable and topical prescription medicines, according to its website.
Teligent began looking to sell its assets before filing for bankruptcy and “is in ongoing discussions with several interested parties,” the company said in a statement. The manufacturer expects to close a sale of its whole business or its most valuable parts by early next year.
The Chapter 11 filing allows Teligent to continue operating while it works out a plan to repay creditors. The company is arranging $12 million of new financing from its senior lenders, according to the statement.
Alongside the filing, the company said Chief Executive Officer Tim Sawyer and Chief Legal Officer Philip Yachmetz resigned effective Oct. 8. Teligent added to its board Bradley Scher, founder of Ocean Ridge Capital Advisors, who has “served in a variety of crisis and interim management roles,” according to the statement.
In 2019, the U.S. Food and Drug Administration issued a so-called Warning Letter to Teligent, highlighting shortfalls in its manufacturing processes. The company has said it’s working to address the letter.
“While this is not the outcome we envisioned, we are confident that Teligent’s business includes a strong portfolio of specialty generic prescription assets and believe a sale is the best opportunity to maximize value,” John Celentano, chairman of Teligent’s board of directors, said in the statement.
The case is Teligent Inc., 21-11332, U.S. Bankruptcy Court for the District of Delaware.
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