Aceto Corporation
Chapter 11 Bankruptcy
Case Summary

United States Bankruptcy Court for the District of New Jersey
Case No. 19-13448

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Bankruptcy Case Summary

The following details regarding Aceto Corporation's bankruptcy filing are excerpted from the Declaration of the Chief Financial Officer of Aceto Corporation which was filed with the New Jersey Bankruptcy Court on February 20, 2019.  A copy of the full declaration can be downloaded by clicking on the image to the right.

• "The Company is engaged in the development, marketing, sales and distribution of finished dosage form generic pharmaceuticals, nutraceutical products, pharmaceutical active ingredients and intermediates, specialty performance chemicals inclusive of agricultural intermediates and agricultural protection products."
• "The Company does not operate any manufacturing facilities. "
  
• "Aceto is a publicly-traded company and trades its common stock on the NASDAQ Global Select Market using the symbol ACET." 
• "As of the Petition Date, the Debtors employ approximately 180 employees, none of whom are subject to a collective bargaining agreement. Of these  Employees, approximately 120 are salaried and 60 are hourly."
  

• "For the fiscal year ending June 30, 2018, the Company generated net sales totaling approximately $711.4 million on a consolidated basis, consisting of: (a) net sales totaling approximately $374.5 million arising from the Company’s Human Health segment; (b) net sales totaling approximately $158.9 million arising from the Company’s Pharmaceutical Ingredients segment; and (c) net sales totaling
  approximately $178.0 million arising from the Company’s Performance Chemicals segment."
• "Certain of the Debtors have incurred and/or issued debt through two debt facilities, consisting of (i) a secured revolving and term loan A&R Credit Agreement with outstanding revolving loans borrowed thereunder as of the Petition Date in the approximate principal amount of $85 million (plus accrued interest) and outstanding term loans borrowed thereunder as of the Petition Date in the approximate principal amount of $120 million (plus accrued interest); and (ii) unsecured 2.00% Convertible Senior Notes due November 2020 in the outstanding principal amount as of the Petition Date of $143.75 million."
• "After thoroughly considering all options available to them, the Debtors, in consultation with their professional advisors, ultimately determined that given the challenges described above, one or more sales of the Company’s businesses and assets as a going concern was the best available option to maximize value."
• "As a result of the bids received on January 15, 2019, the Company determined that an in-court sale process pursuant to section 363 of the Bankruptcy Code was the best available executable structure through which such sale transactions could be completed."
• "After thoroughly evaluating the Final Bidding Documents, the Company’s Board of Directors, in consultation with the Company’s professionals, determined that NMC Atlas, L.P. submitted the highest and best bid for the Chemical Plus assets pursuant to a form of asset purchase agreement for a cash purchase price of $338,000,000 (subject to certain adjustments) plus payment of cure costs and the assumption by the Stalking Horse Bidder of certain assumed liabilities."
• "The Company ultimately decided to seek the protections of chapter 11 of the Bankruptcy Code in order to provide the Company with the breathing spell and relief necessary to, among other things, pursue the sale transaction contemplated by the Chemical Plus Stalking
  Horse Agreement, as well as a separate sale of the Pharma Business. The Debtors therefore will promptly seek approval of auction and sale procedures with respect to the proposed sale of Chemical Plus pursuant to the Chemical Plus Stalking Horse Agreement, as well as additional relief to maintain the Company’s operations until such time as both sale transactions can be consummated. The Company continues to negotiate a stalking horse agreement with respect to the sale of the Pharma Business."

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