New Delaware Chapter 11 Filing – Pernix Sleep, Inc.

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Pernix Sleep, Inc., along with twelve affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10323).  Pernix, headquartered in Morristown, New Jersey, is a specialty pharmaceutical company which sells three core branded products through wholesalers to drug stores and pharmacies nationwide.  According to the First Day Declaration, Pernix has filed as a result of several adverse litigation outcomes, and in order to right-size its capital structure.  Pernix announced in a press release earlier today that it enters chapter 11 intending to sell substantially all of its assets, with affiliates of Highbridge Capital Management serving as the stalking horse bidder.  A bid procedures motion has not yet been filed.  Prime Clerk is the proposed claims and noticing agent.  The cases have been assigned to the Honorable Chief Judge Christopher S. Sontchi.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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