The Official Committee of Unsecured Creditors of Akorn, Inc., and its debtor-affiliates seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Huron Consulting Services LLC, as financial advisors to the Committee.
The Committee requires Huron Consulting to:
a) review and analyze financial information prepared by the Debtors, their accountants and/or other financial advisors;
b) monitor and analyze the Debtors’ operations and financial condition, cash expenditures, court filings, business plans, operating forecasts, strategy, projected cash requirements and cash management;
c) attend meetings of the Committee, Debtors, their respective professionals, bankruptcy court hearings and participating in such other matters and on such occasions as the Committee may, from time-to-time request;
d) review and analyze any restructuring or plan of reorganization proposed by the Debtors or any other party, and assist the Committee with evaluating and negotiating the terms and conditions of any restructuring or plan of reorganization, including analyzing the value of securities, if any, that may be distributed to unsecured creditors under any such restructuring or plan;
e) review and analyze proposed transactions for which the Debtors seek Court approval;
f) review, analyze, and make recommendations regarding any proposed disposition of the Debtors’ assets and all related documentation, debtor-in-possession financing, proposed operational changes, and any expenditures out of the ordinary course of the Debtors’ business;
g) review reports concerning the Debtors’ business and operations, including assessing the value of non-debtor affiliates;
h) analyze the Debtors’ pre-petition property, liabilities and financial condition, including analyzing potentially unencumbered assets, and the transfers with and among Debtors’ affiliates;
i) support any bankruptcy court proceedings necessary or appropriate to maximize recovery by the Committee’s constituents, including expert witness or other testimony;
j) investigate causes of action and other items as directed by the Committee;
k) investigate possibly preferential or fraudulent transfers;
l) if requested by the Committee, assisting with seeking prospective lenders, due diligence, transaction support, negotiations with prospective lenders and optimizing the terms of a prospective transaction;
m) provide such other services as the Committee may, from time-to-time, deem necessary or appropriate in the course of discharging its fiduciary duties.
Huron Consulting will be paid at these hourly rates:
Managing Directors $825 to $1,195
Senior Directors $750 to $925
Directors $460 to $745
Managers $425 to $580
Associates $420 to $460
Analysts $300 to $300
Huron Consulting will also be reimbursed for reasonable out-of-pocket expenses incurred.
Timothy J. Martin, managing director of Huron Consulting Services LLC, assured the Court that the firm is a “disinterested person” as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors’ chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason.
Huron Consulting can be reached at:
Timothy J. Martin
HURON CONSULTING SERVICES LLC
550 W. Van Buren Street
Chicago, IL 60607
Tel: (312) 583-8700
Fax: (312) 583-8701
About Akorn, Inc.
Akorn, Inc. (Nasdaq: AKRX) is a specialty pharmaceutical company that develops, manufactures, and markets generic and branded prescription pharmaceuticals, branded as well as private-label over-the-counter consumer health products, and animal health pharmaceuticals. Akorn is headquartered in Lake Forest, Ill., and maintains a global manufacturing presence, with pharmaceutical manufacturing facilities located in Illinois, New Jersey, New York, Switzerland, and India.
Akorn, Inc., and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-11178) on May 20, 2020. As of March 31, 2020, Debtors disclosed total assets of $1,032,275,000 and total liabilities of $1,051,769,000.
Judge John T. Dorsey oversees the cases.
Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis International LLP as their general bankruptcy counsel. Richards, Layton & Finger, P.A., is Debtors’ local counsel. AlixPartners, LLP, serves as the Debtors’ restructuring advisor while PJT Partners LP is the financial advisor and investment banker. Kurtzman Carson Consultants, LLC, is the notice and claims agent.
The U.S. Trustee for Region 3 appointed a committee to represent unsecured creditors in the Chapter 11 cases of Akorn Inc. and its affiliates. The Committee retained Jenner & Block LLP, as counsel; Saul Ewing Arnstein & Lehr LLP, as co-counsel; and Huron Consulting Services LLC, as financial advisors.