Inotiv, Inc. Files for Chapter 11 Bankruptcy; Nasdaq Delisting Imminent
Key Points
- Inotiv, Inc. and certain subsidiaries have filed voluntary petitions for Chapter 11 bankruptcy protection.
- The company has entered into a Debtor-in-Possession (DIP) financing facility with final terms now disclosed.
- Nasdaq has notified Inotiv of its determination to delist the company’s common shares as a result of the bankruptcy filing.
- Trading in Inotiv’s shares will be suspended at the opening of business on June 11, 2026.
- The company does not intend to appeal the delisting decision.
- A Form 25-NSE will be filed to remove the company’s shares from listing and registration on Nasdaq.
- Shareholders are cautioned that existing equity interests are expected to be cancelled with no distribution under the proposed plan.
Detailed Overview
On June 3, 2026, Inotiv, Inc. (the “Company”) and certain subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in an effort to implement a joint prepackaged plan of reorganization. The company’s filing with the U.S. Securities and Exchange Commission (SEC) on Form 8-K discloses that the DIP financing facility, which had previously been anticipated, has now been finalized. The full terms of the DIP Credit Agreement are included as an exhibit to the filing.
In connection with the bankruptcy, the Company received notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) that Nasdaq will delist Inotiv’s common shares, citing the Chapter 11 filing as grounds under Nasdaq Listing Rules 5101, 5110(b), and IM-5101-1. The delisting is scheduled to take effect at the opening of business on June 11, 2026, after which a Form 25-NSE will be filed with the SEC to remove the shares from listing and registration on Nasdaq. Notably, Inotiv does not intend to appeal this determination.
The company’s SEC filing includes a stark warning for shareholders: “The Company expects that holders of its existing equity interests could experience a total loss on their investment, as the Plan contemplates that all existing equity interests in the Company will be cancelled without any distribution to existing equity holders.” Inotiv cautions that trading in its securities during the pendency of the Chapter 11 cases is “highly speculative and poses substantial risks,” and that market prices may not reflect actual recovery prospects—which, under the current plan, are zero for common shareholders.
The DIP financing is expected to provide liquidity to support Inotiv’s operations during the restructuring, but it is senior to existing equity and is part of a broader restructuring plan that leaves existing shareholders with no recovery. The company also references the forward-looking nature of its statements, listing numerous risk factors and uncertainties that could affect the outcome of the bankruptcy process, including the ability to comply with DIP covenants, actions of creditors and regulators, and other risks described in its most recent filings.
For more details and to access court documents, stakeholders are directed to the Kroll Restructuring Administration website. Contact information for Kroll is also provided for those seeking direct assistance.
