Akorn Restructuring Support Agreement

For more information on chapter 11 cases, see Akorn`s special microsite, www.akorn-forward.com. Information about claims can be found at www.kccllc.net/akorn. After focusing on the new timetable, debtors, their consultants and advisors worked tirelessly to negotiate the final documentation of a loan offer maximizing the value of the Term Loan Lenders, which attracted other offers when markets began to stabilize in the wake of the COVID 19 crisis. The stalking-horse offer only sets the ground for another market test and a possible sale to a third-party buyer if that buyer submits a feasible offer superior or otherwise better than the stalking-horse offer. Support for term lenders for the sale process will also be reflected in the Restructuring Assistance Agreement, which will be implemented by holders of approximately 80% of the principal term loan amount. In order to implement the restructuring agreement that maximized the value of the restructuring assistance agreement, some parties to the restructuring assistance agreement also agreed to provide $30 million in external debt (DIP) to finance the Chapter 11 procedure and the sale process. Akorn`s insolvency application follows a $4.75 billion merger agreement with Fresenius Kabi AG, a specialty and generic group. Fresenius initially agreed to take over Akorn in 2017, but subsequently terminated the merger agreement in 2018 on the basis of substantial breaches related to Akorn`s data integrity requirements found during the Fresenius investigation. About Akorn Akorn, Inc. is a pharmaceutical company specializing in the development, production and marketing of multi-source and branded pharmaceuticals.

Akorn has production sites in Decatur, Illinois; Somerset, New Jersey, Amityville, New York; Hettlingen, Switzerland and Paonta Sahib, India, which manufacture sterile and non-sterile ophthalmic, injectable and special medicines. For more information, please visit Akorn`s website at www.akorn.com. As part of the bid, the Company entered into a restructuring support agreement with lenders who have incurred more than 75% of its secured debts, who will jointly act as “Stalking Horse” members in the sale process of the business and will provide additional liquidity to finance the company`s activities during this process.