S&P drops Akorn to D

S&P said it downgraded Akorn Operating Co. LLC’s issuer and first-lien term loan ratings to D from CCC+. The loan’s recovery rating is unchanged at 3.

“Akorn Operating Co. LLC filed for chapter 7 bankruptcy after failing to negotiate a sale of its remaining assets. The company operated with negative cash flow, and we viewed its capital structure as unsustainable. The company's term loan holders were also its controlling equity holders following a chapter 11 restructuring in 2020. We anticipate that we will withdraw our ratings in the next 30 days, as we believe the company has ceased operations and will liquidate its assets,” S&P said in a press release.

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