The US Bankruptcy Court approved the first amended prepackaged joint plan of reorganization of reorganization and related disclosure statement of Lannett Company, Inc., on June 8, 2023. The debtor has filed its first amended prepackaged joint plan of reorganization in the Court on June 5, 2023. As per the amended plan, administrative claims, professional fee claims, priority tax claims, statutory fees, other priority claims of $11 million shall be paid in full in cash.

Other secured claims of $0.34 million shall either be paid in full in cash or reinstated or delivered collateral securing such claim. First lien senior secured notes claim of $364.9 million with expected recovery of 91% shall receive its pro rata share of 97% of the takeback exit facility and its pro rata share of 97% of the new common stock, subject to dilution on account of the MIP new common stock and the new warrants. Second lien term loan claims of $364.9 million with expected recovery of 5% shall receive, in full and final satisfaction of such allowed second lien term loan claim, its pro rata share of 3% of the takeback exit facility, its pro rata share of 3% of the new common stock, subject to dilution on account of the MIP new common stock and the new warrants and its pro rata share of the Second Lien New Warrant Recovery.

General unsecured claims of $20 million shall either be reinstated or paid in full in cash. Convertible notes claim of $88.5 million and $2.28 million of accrued interest shall receive, in full and final satisfaction of such allowed convertible notes claim, its pro rata-share of the convertible noteholder new warrant recovery.