The names of companies and law firms shown above are generated automatically based on the text of the article. We are improving this functionality as we continue to test and develop in beta. We appreciate comments, which you can provide using the comments tab on the right of the page.
(Reuters) – Teligent Inc on Friday obtained court approval to access part of a $ 12 million loan to fund its operations as the generic drug maker goes through its bankruptcy and sale process.
U.S. bankruptcy judge Brendan Linehan Shannon in Wilmington, Delaware, authorized the company to tap $ 6 million of the interim financing in the company’s first hearing since Chapter 11 filing Thursday. Teligent reported nearly $ 130 million in debt and blamed its problems on the combination of manufacturing violations identified by the U.S. Food and Drug Administration and the COVID-19 pandemic.
A final hearing on the full loan amount is scheduled for November 9. There were no objections to funding during Friday’s hearing.
Teligent, represented by Young Conaway Stargatt & Taylor and K&L Gates, is continuing a sale process which is expected to close at the end of January. Interested parties seeking to make lead offers for the company have until Nov. 22 to do so.
The New Jersey-based company manufactures topical and injectable pharmaceuticals that are used for cosmetics and treatments for skin conditions.
In 2019, the FDA identified several violations of manufacturing regulations at Teligent’s facilities in Buena, New Jersey, and required the company to comply. Teligent then conducted a product review and recalled some products, while stopping production of others.
These developments have adversely affected the operations and cash flow of the company. Its declining financial situation was then exacerbated by the impact of the COVID-19 pandemic in part because dermatological products are often elective.
The Canadian subsidiary of Teligent is not involved in the bankruptcy proceedings but is pursuing an out-of-court sale.
The case is In re: Teligent Inc, US Bankruptcy Court, District of Delaware, No. 21-11332.
For Teligent: Michael Nestor and Matthew Lunn from Young Conaway Stargatt & Taylor
For Senior Lenders: Ted Dillman of Latham & Watkins
Generic drugmaker Teligent files chapter 11 case, considers sale
Reporting by Maria Chutchian