A drug manufacturer from Bucks County has filed for bankruptcy in the face of financial struggles and a high amount of debt. John George wrote about the company for the Philadelphia Business Journal.

Trevose-based Lannett has entered into a restructuring support agreement that will involve a Chapter 11 U.S. Bankruptcy Court filing.

The transaction – which involves the holders of over 80 percent of the company’s senior secured notes – will strengthen Lannett’s financial position by converting around $511 million of secured debt into equity.

“This agreement will allow us to focus on strategically positioning the company as a reliable partner and manufacturer, producing safe, effective, life-enhancing generic, affordable pharmaceutical products,” said Tim Crew, the CEO of Lannett.

He added that the company is satisfied that it was able to reach this agreement with its noteholders and lenders.

“We see this cooperation as a vote of confidence in our future and our direction as a company,” he said.

Once the transaction is completed, the secured lenders will be the owners of Lannett’s equity and its existing stock will be canceled.

Last month, the New York Stock Exchange delisted Lannett stock after it fell below NYSE’s continued listing standards.

The company is expecting to complete the financial restructuring by June 18.

Read more about Lannett in the Philadelphia Business Journal.

_____