Leiner files for Chapter 11 bankruptcy protection
CARSON CITY, Calif. Leiner Health Products earlier this week filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in Delaware. Leiner intends to use the Chapter 11 process to restructure its debt obligations and explore the sale of the business
In conjunction with the filing, a group of pre–petition lenders has agreed to provide Leiner with $74 million in debtor–in–possession financing that, together with the company’s existing cash flow, will enable Leiner to fulfill obligations associated with operating its business, including payments to suppliers and other business partners for goods delivered and services provided on or after today’s filing. This financing arrangement is subject to court approval.