Inotiv Files Prepackaged Chapter 11, Secures $90M Financing, Cuts $326M Debt
NOTV is trading near its 52-week low of $0.216 (7.4% below the low).
Summary
Inotiv has filed for a voluntary prepackaged Chapter 11 bankruptcy in Texas, aiming to recapitalize and reduce its debt by approximately $326 million. The company has secured $25 million in debtor-in-possession (DIP) financing and commitments for an additional $65 million in new money financing. This move follows months of liquidity covenant waivers and a recent 10-Q filing that warned of imminent default on its convertible notes. The restructuring provides a critical path for Inotiv to address its severe financial distress and continue operations, though existing equity holders are likely to face substantial dilution or loss.
At the time of this announcement, NOTV was trading at $0.20 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $9.1M. The 52-week trading range was $0.22 to $3.32. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Reuters.