LRC serves as co-counsel with Davis Polk & Wardwell LLP representing Pernix Sleep, Inc. and its affiliates (“Pernix”) in their chapter 11 proceedings (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of Delaware. Pernix was a specialty pharmaceutical company focused on improving patients’ lives by identifying, developing and commercializing differentiated products that address unmet medical needs. LRC prepared all operational motions in connection with the Chapter 11 Cases and advised Pernix regarding all respects of their Chapter 11 Cases, including the implementation of a global settlements reached with the Official Committee of Unsecured Creditors (the “Committee Settlement”) and WARN Act litigants (the “WARN Settlement”). The sale of substantially all of Pernix’s assets to an affiliate of Pernix’s pre-petition senior secured lender was approved by the court on April 15, 2019 and closed on April 30, 2019. Following the closing, LRC formulated a wind-down strategy and was instrumental in settling a class of Worker Adjustment and Retraining Notification Act claims (the “WARN Settlement”), avoiding potentially complex, time-consuming and expensive litigation. LRC devised Pernix’s joint plan of liquidation (the “Plan”) which implemented the UCC Settlement and WARN Settlement. The Plan was fully consensual and was confirmed by the Bankruptcy Court on June 20, 2019 and went effective on June 24, 2019, four months after the chapter 11 proceedings began.
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