Avadel Pharmaceuticals wins court OK to use $716,000 of DIP loan

By Caroline Salls

Pittsburgh, Feb. 8 – Avadel Specialty Pharmaceuticals, LLC obtained court approval to access $716,000 of a proposed $2.7 million in debtor-in-possession financing on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for March 13.

The financing will be provided by Avadel US Holdings, Inc.

The DIP facility will mature on the earliest of 12 months after the bankruptcy filing date, dismissal or conversion of the Chapter 11 case, appointment of a trustee or examiner to oversee the case, 30 days after the bankruptcy filing if a final order has not been entered and the effective date of a plan of reorganization or liquidation.

Interest will accrue at a rate of 5%.

Avadel Pharmaceuticals is a Dublin-based specialty pharmaceutical company. The company filed bankruptcy on Feb. 6 under Chapter 11 case number 19-10248.

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