South Jersey-based generic pharmaceutical company Teligent Inc. has filed for Chapter 11 bankruptcy protection and will pursue a sale of its assets, it announced Thursday.
The Buena-based company’s CEO and chief legal officer also have resigned, and a chief restructuring officer has been appointed, it said in a news release.
Teligent said it has begun a marketing process ahead of the filing in U.S. Bankruptcy Court for the District of Delaware, and is in ongoing discussions with multiple parties. It expects to complete a sale of the entire business or its core assets by early 2022.
“The entire Teligent team has worked diligently over the past year to address market trends, our debt structure and operational hurdles that have challenged our business,” board Chairman John Celentano said in a prepared statement. “While this is not the outcome we envisioned, we are confident that Teligent’s business includes a strong portfolio of specialty generic prescription assets and believe a sale is the best opportunity to maximize value.”
Vladimir Kasparov, a managing director at Portage Point Partners, has been named chief restructuring officer to oversee the process along with executives including interim Chief Financial Officer Alyssa Lozynski and new Director Bradley E. Scher, among others. CEO Tim Sawyer and Executive Vice President and Chief Legal Officer Philip Yachmetz resigned as of Oct. 8.
“On behalf of the entire Teligent board of directors, I’d like to thank Tim and Phil for their dedication and hard work on behalf of the company throughout their tenures,” Celentano said. “We welcome Vlad, Alyssa and Brad to the team and look forward to partnering with them as we pursue the company’s strategy and a value-maximizing sale.”
The company said it has arranged $12 million in financing to fund operations during the Chapter 11 process. Its common stock is scheduled for delisting from the Nasdaq Global Select Market as of Monday.
Young Conaway Stargatt & Taylor LLP and K&L Gates LLP are serving as legal advisers, while Raymond James & Associates Inc. is serving as investment banker and Kasparov’s company, Portage Point Partners, is serving as financial adviser and provider of interim management services.