Item 2.02. Results of Operations and Financial Condition.
On August 7, 2020, Akorn, Inc. (the "Company") issued a press release announcing
financial results as of and for the quarter ended June 30, 2020. A copy of the
press release is furnished as Exhibit 99.1 to this report.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, shall
not be deemed to be "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to
the liabilities of that section, nor shall it be deemed to be incorporated by
reference in any filing under the Securities Act of 1933, as amended (the
"Securities Act"), or the Exchange Act, except as shall be expressly set forth
by specific reference in such a filing.
Cautionary Note Regarding Forward-Looking Statements
This report includes statements that may constitute "forward-looking
statements," including those regarding the effects of COVID-19, as well as the
Company's long-term business plan and outlook, financial performance, the
voluntary cases under chapter 11 ("Chapter 11") of title 11 of the United States
Code (the "Bankruptcy Code") of Akorn, Inc. and its U.S. direct and indirect
subsidiaries, the Company's ability to continue operating in the ordinary course
while the Chapter 11 cases are pending, and the Company's ability to complete
the sale of some or all of its assets pursuant to Section 363 of the Bankruptcy
Code (the "Sale"). When used in this report, the words "will," "expect,"
"continue," "believe," "seek," "anticipate," "estimate," "intend," "could,"
"would," "strives" and similar expressions are generally intended to identify
forward-looking statements. These statements are made pursuant to the safe
harbor provisions of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). A number of important factors could cause actual results of the Company
and its subsidiaries to differ materially from those indicated by such
forward-looking statements. These factors include, but are not limited to: (i)
the Company's ability to consummate the Sale; (ii) potential adverse effects of
the Chapter 11 cases on the Company's liquidity and results of operations; (iii)
the Company's ability to obtain timely approval by the Court with respect to the
motions filed in the Chapter 11 cases; (iv) objections that could protract the
Chapter 11 Cases; (v) employee attrition and the Company's ability to retain
senior management and other key personnel due to the distractions and
uncertainties; (vi) the Company's ability to comply with the restrictions
imposed by the terms and conditions of the DIP Facility and other financing
arrangements; (vii) the Company's ability to maintain relationships with
suppliers, customers, employees and other third parties and regulatory
authorities as a result of the Chapter 11 cases; (viii) the effects of the
Chapter 11 cases on the Company and on the interests of various constituents,
including holders of the Company's common stock; (ix) the Court's rulings on the
outcome of the Chapter 11 cases generally; (x) the length of time that the
Company will operate under Chapter 11 protection and the continued availability
of operating capital during the pendency of the Chapter 11 cases; (xi) risks
associated with third party motions in the Chapter 11 cases, which may interfere
with the Company's ability to consummate the Sale or an alternative transaction;
(xii) increased administrative and legal costs related to the Chapter 11
process; potential delays in the Chapter 11 process due to the effects of the
COVID-19 virus; (xiii) other litigation and inherent risks involved in a
bankruptcy process; and (xiv) such other risks and uncertainties outlined in the
risk factors detailed in Part I, Item 1A, "Risk Factors," of the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (as filed
with the SEC on February 26, 2020), Part II, Item 1A, "Risk Factors," of the
Company's Quarterly Reports on Form 10-Q for the fiscal quarter ended March 31,
2020 (as filed with the SEC on May 11, 2020) and June 30, 2020 (as filed with
the SEC on August 7, 2020) and other risk factors identified from time to time
in the Company's filings with the SEC. Readers should carefully review these
risk factors, and should not place undue reliance on the Company's
forward-looking statements. These forward-looking statements are based on
information, plans and estimates at the date of this report. The Company
undertakes no obligation to update any forward-looking statements to reflect
changes in underlying assumptions or factors, new information, future events or
other changes.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description of Exhibit
99.1 Press release dated August 7, 2020, entitled "Akorn Provides Second
Quarter 2020 Results."
104 Cover Page Interactive Data File - the cover page XBRL tags are embedded
within the Inline XBRL document.
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