Inotiv Secures $65.5M DIP Financing, Confirms Nasdaq Delisting and Total Loss for Equity Holders

summarizeSummary

Inotiv finalized $65.5 million in bankruptcy financing and announced its delisting from Nasdaq, confirming that existing equity holders are expected to lose their entire investment.

check_boxKey Events

• DIP Financing Finalized

  Inotiv entered into a Superpriority Secured Debtor-In-Possession (DIP) Credit Agreement for $65.5 million, comprising $25 million in new money term loans and a $40.5 million roll-up of existing bridge loans. The loans bear interest at Adjusted Term SOFR (2.5% floor) plus 11.5% (paid in kind), with upfront premiums of 4.5% and 3.5% respectively, also paid in kind. This financing provides critical liquidity for the company's Chapter 11 proceedings.

• Nasdaq Delisting Confirmed

  Nasdaq notified Inotiv of its decision to delist the company's common shares due to the Chapter 11 bankruptcy filing. Trading will be suspended at the opening of business on June 11, 2026, and the company does not intend to appeal this determination.

• Total Loss for Equity Holders Expected

  The company explicitly stated that its prepackaged Chapter 11 plan contemplates the cancellation of all existing equity interests without any distribution to current equity holders, indicating an expected total loss on their investment.

auto_awesomeAnalysis

This 8-K finalizes the terms of Inotiv's Debtor-In-Possession (DIP) financing, providing $65.5 million to support its Chapter 11 restructuring. Crucially, it also announces Nasdaq's decision to delist the company's common shares, with trading suspended on June 11, 2026. The filing explicitly states that the reorganization plan anticipates a total loss for existing equity holders, as their interests will be cancelled without distribution. This is a definitive, catastrophic event for current shareholders.