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AAIPharma Moves Ahead with Reorganization Plan
AAIPharma Inc. (Wilmington, NC, www.aaipharma.com) said on Jan. 20 that the Bankruptcy Court for the District of Delaware has approved its reorganization plan.
According to the plan, all equity will be given back to bondholders, thereby reverting AAIPharma to a private entity. “Holders of unsecured claims will be entitled to receive their pro rata share of a cash distribution from a $4-million pool,” the company stated in a release. “Current holders of the Company’s common stock will receive no distribution and all shares of AAIPharma’s existing common stock will be cancelled.”
AAIPharma filed for Chapter 11 bankruptcy last year after failing to pay off nearly $350 million in debt, in part because of generic competition to its newly launched product line. Xanodyne Pharmaceuticals (Florence, KY, www.xanodyne.com) bought that line for $209.5 million, allowing the company to pay some of its debt. Products included “Darvon” and “Darvocet” brand families, “Oramorph SR,” “Methadone Injection,” “Duraclon,” “Roxicodone,” and “Roxanol,” as well as four developmental products.
“We are very pleased that the Court has confirmed our plan of reorganization,” stated Ludo J. Reynders, president and CEO of AAIPharma. “Upon consummation of the plan, AAIPharma will emerge as a healthy company with restored financial strength to meet the needs of our customers and to provide a stable work environment for our employees. We look forward to the many new opportunities available to the company following completion of our reorganization.”