Edition:
United Kingdom

Lannett Company Inc Approved Restructuring Plan With Respect To Wholly-Owned Subsidiary Cody Laboratories


Monday, 17 Jun 2019 

June 17 (Reuters) - Lannett Company Inc ::LANNETT COMPANY INC - ON JUNE 11 APPROVED RESTRUCTURING PLAN WITH RESPECT TO WHOLLY-OWNED SUBSIDIARY CODY LABORATORIES.LANNETT COMPANY INC - INTENDS TO SELL EQUIPMENT AND REAL ESTATE UTILIZED BY CODY API BUSINESS AND TO HAVE CODY LABS CEASE ALL OPERATIONS.LANNETT COMPANY INC - IN CONNECTION WITH CODY API RESTRUCTURING PLAN, THERE WILL BE A REDUCTION OF ALL REMAINING 70 POSITIONS AT CODY LABS.LANNETT COMPANY INC - EXPECTS ACTIONS CONTEMPLATED UNDER CODY API RESTRUCTURING PLAN WILL BE SUBSTANTIALLY COMPLETED BY SEPTEMBER 30, 2019.LANNETT COMPANY INC - CURRENTLY ESTIMATES IT WILL INCUR ABOUT $5.0 MILLION OF TOTAL COSTS TO IMPLEMENT CODY API RESTRUCTURING PLAN.LANNETT - IMPAIRMENT FROM RESTRUCTURING IS IN ADDITION TO $29.9 MILLION IMPAIRMENT CHARGE INCURRED IN Q1 FISCAL 2019 WHEN PLAN TO SELL CODY API BUSINESS WAS FIRST APPROVED.LANNETT COMPANY - IMPAIRMENT TO RESULT IN A NONCASH CHARGE TO EARNINGS IN Q4 FISCAL 2019 & HAS NO IMPACT ON CO'S FINANCIAL COVENANT LEVERAGE RATIO.