Pernix Therapeutics Holdings filed voluntary petition under chapter 11 of title 11 of the United States Code

On February 18, 2019, Pernix Therapeutics Holdings, Inc. and Pernix’s wholly-owned subsidiaries filed voluntary petitions under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware, for which joint administration has been sought, under the caption In re Pernix Sleep, Inc., et al. Case No. 19-10323 (lead case). Each Debtor will continue to operate its business as a “debtor in possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Court. The Debtors expect to continue their operations in the ordinary course of business without interruption during the pendency of the Chapter 11 Cases, pending the sale of their assets in one or more going concern sales pursuant to a competitive bidding and auction process. To maintain and continue uninterrupted ordinary course operations during the Chapter 11 Cases, the Debtors have filed a variety of “first day” motions seeking approval from the Court for various forms of customary relief. The filing of the Bankruptcy Petitions constitutes an event of default that accelerated the obligations of Pernix and certain of its subsidiaries under the documents governing each of: Pernix’s Treximet Secured Notes; Pernix’s 4.25% Convertible Notes due 2021; the 4.25%/5.25% Exchangeable Senior Notes due 2022 issued by PIP DAC; the Existing Credit Facility; and PIP DAC’s Existing Delayed Draw Term Loan. The Debt Instruments provide that as a result of the filing of the Bankruptcy Petitions, the principal and accrued interest due thereunder shall be immediately due and payable. Any efforts to enforce such payment obligations under the Debt Instruments are automatically stayed as a result of the filing of the Bankruptcy Petitions, and the creditors’ rights of enforcement in respect of the Debt Instruments are subject to the applicable provisions of the Bankruptcy Code. There are three outstanding notes with $254 million amount outstanding.

Pernix Therapeutics Holdings filed voluntary petition under chapter 11 of title 11 of the United States Code

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