Acorda Therapeutics (OTC:ACORQ), Inc. (formerly NASDAQ:ACORQ) has finalized the sale of substantially all of its assets to Merz Pharmaceuticals, LLC for $185 million, a transaction approved by the bankruptcy court on June 12, 2024. The sale, completed on Wednesday, comes as part of Acorda's ongoing Chapter 11 bankruptcy proceedings, which began on April 1, 2024.
The proceeds from the sale have been allocated primarily to secured creditors, with approximately $139 million disbursed, including the repayment of a debtor-in-possession loan. Additionally, $5 million has been placed into escrow for post-closing adjustments, and roughly $10.5 million is reserved for the company's wind-down and liquidation plan, pending court approval.
Acorda's common stock is expected to be deregistered following court confirmation of the liquidation plan, leading to the cancellation of outstanding shares. The company has warned that there will likely be no distribution of proceeds to stockholders.
Investors are cautioned that trading in Acorda's securities is highly speculative and risky, especially given the uncertainties surrounding the bankruptcy process. The company's monthly operating reports, filed with the court, are not intended for investment decision-making.
This news is based on a press release statement and reflects the current status of Acorda Therapeutics, Inc. as it navigates through bankruptcy and asset liquidation.
In other recent news, Acorda Therapeutics has made significant strides in its ongoing Chapter 11 proceedings. The company received court approval to sell substantially all of its assets to Merz Pharmaceuticals, a move that marks a significant milestone in its bankruptcy process. The sale, valued at $185 million, was initially agreed upon in March, and the court's decision is subject to standard closing conditions.
Furthermore, Acorda's common stock was delisted from NASDAQ, with expectations of deregistration under Section 12(b) of the Exchange Act around July. Following this, the company's stock is expected to begin trading on the Pink Open Market, a platform for trading securities not listed on major exchanges.
These recent developments, however, come with a warning to investors about the speculative nature and substantial risks of trading in Acorda's securities due to the uncertainties surrounding the Chapter 11 process. The company has cautioned that securities holders are likely to see little to no recovery on their investments.
The future operations of Acorda and the success of its products, including INBRIJA and AMPYRA, may be influenced by various factors, including the company's ability to maintain relationships with suppliers, customers, and employees during the Chapter 11 process.
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