RestructuringJun 3, 2026, 10:12 AM
Inotiv Files for Chapter 11, Reduces Debt by $326M
AI Summary
Inotiv, Inc. has filed for voluntary Chapter 11 bankruptcy to implement a comprehensive restructuring of its debt obligations and capital structure. The pre-packaged plan, supported by a substantial majority of its creditors, is expected to reduce the company's total funded debt by approximately $326 million through a debt-to-equity conversion. Inotiv secured $65 million in new money financing to support operations and anticipates emerging as a private company within 50 days, with no expected adverse operational impact.
Key Highlights
- Filed voluntary Chapter 11 cases on June 3, 2026, to implement a comprehensive debt restructuring.
- Expected to reduce total funded debt obligations by approximately $326 million.
- Secured $65 million in new money financing ($25M DIP, $40M bridge) to support ongoing operations.
- Substantial majorities of first lien, second lien PIK, and unsecured convertible noteholders support the plan.
- Plans to convert a significant portion of funded debt into equity of the reorganized company.
- Expects to emerge from Chapter 11 as a private company within 50 days.
- Anticipates no adverse operational impact, continuing to pay vendors and employees normally.
Price Impact
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