RVL Pharmaceuticals wins confirmation of pre-packaged Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Nov. 20 – RVL Pharmaceuticals plc’s U.S. operating subsidiaries, RevitaLid Pharmaceutical Corp., RVL Pharmaceuticals, Inc. and RVL Pharmacy, LLC, received confirmation of their pre-packaged Chapter 11 plan, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

As background, the companies have reached an agreement with their sole secured lenders, funds managed by Athyrium Capital Management, and other key stakeholders, on a change-of-control transaction.

The reorganization provides a structured pathway for the RVL subsidiaries to significantly reduce their debt, while enabling them to streamline operations, maintain jobs and position themselves under new ownership.

As a result of the reorganization, RVL is expected to start the wind-down of any remaining operations of the company and its subsidiaries, other than the debtor subsidiaries.

RVL’s public equity is expected to be canceled upon completion of its wind-down, anticipated to be during 2024, likely resulting in no recovery to public shareholders.

Under the reorganization, funds managed by Athyrium will exchange their outstanding debt into equity of a newly formed entity that will either directly hold 100% of the equity interests of Revitalid Pharmaceutical, Corp., which is currently an indirect wholly owned subsidiary of the company, or indirectly hold 100% of the equity interests of RVL Pharmaceuticals, Inc., which is currently a wholly owned subsidiary of Revitalid Pharmaceutical, Corp. and the direct parent of RVL Pharmacy, LLC.

Under the plan, holders of class 3 secured note claims will receive their pro rata share of 97.5% of the equity of New Common Equity HoldCo, subject to dilution by the management incentive plan.

Holders of class 4 general unsecured claims will receive payment in full in cash, have their claims reinstated, or receive other treatment leaving the claims unimpaired.

Holders of class 5 SPA rejection unsecured claims will receive their pro rata share of the SPA rejection unsecured claims recovery, subject to dilution by the management incentive plan.

Holders of other secured claims and priority non-tax claims are expected to receive 100% recovery.

Intercompany claims are unimpaired.

The reorganization contemplates that all of RVL subsidiaries’ vendors, suppliers and customers will be unaffected by the reorganization, and their employees will remain employed by these entities.

Bridgewater, N.J.-based RVL Pharmaceuticals is a specialty pharmaceutical company focused on the commercialization of Upneeq, which is used for the treatment of acquired blepharoptosis, or droopy eyelid, in adults. The company filed bankruptcy on Oct. 12 under Chapter 11 case number 23-11704.

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