Lannett Company, Inc., along with its affiliates, filed a prepackaged joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on May 2, 2023. As per the plan filed, 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 new warrants. General unsecured claims of $20 million shall either be reinstated or paid in full in cash.

Convertible notes claim of $88.5 million shall be canceled, released, and extinguished, and will be of no further force or effect, without any distribution. Intercompany claims shall either be reinstated or converted to equity or cancelled. Intercompany interests shall either be reinstated or cancelled.

Section 510(b) claims and existing interests shall be canceled, released, and extinguished, and will be of no further force or effect, without any distribution. On the Effective Date, the New Board shall be established, and the Reorganized Debtors shall adopt their New Organizational Documents. The plan shall be funded from cash on hand, including cash from operations, the new common stock, the new warrants, the takeback exit facility of $60 million and the new revolving credit