By Denny Jacob
Shares of RVL Pharmaceuticals fell to a 52-week low on Thursday after disclosing that several of its operating subsidiaries are filing for bankruptcy.
The shares, which plummeted 50% to 7 cents, are down 93% this year.
The bankruptcy is part of a prepackaged deal with lender Athyrium Capital and other key stakeholders. The reorganization will give the RVL subsidiaries a pathway to reduce their debt, streamline operations and position themselves under new ownership.
RVL will wind down all operations aside from the three subsidiaries that are reorganizing. Shares of RVL will be canceled once the wind-down is finished, which is expected to be next year. The company said there will likely be no recovery for public shareholders.
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