Inotiv, Inc. emerged from Chapter 11 bankruptcy protection on July 19, 2026, completing a financial restructuring that transforms the contract research organization into a privately held company operating under a new parent entity, Inotiv Parent, LLC. The reorganization, which had been confirmed by the bankruptcy court on July 14, leaves former common shareholders with nothing while handing control to the company’s prepetition lenders.
Old Equity Canceled, New Equity Issued
Under the confirmed prepackaged plan, all 35,177,867 common shares of Inotiv, Inc. that were outstanding immediately prior to the effective date were canceled. Existing equity holders did not receive any distribution, property, or other value for their shares. The company’s stock, which had been suspended from Nasdaq on June 11 and began trading over the counter under the symbol NOTVQ, will be deregistered.
In their place, the reorganized parent issued 5.1 million units of new equity interests. The prepetition first lien lenders received 93% of the new equity, while holders of the company’s 15% senior secured second lien PIK notes and 3.25% convertible senior notes together received approximately 7%, subject to dilution from warrants and a future management incentive plan.
Warrant Issuance and Terms
The reorganized parent also issued 630,337 new warrants to the PIK note holders and convertible note holders. Each warrant is exercisable for one unit of new equity at an exercise price of $40.20 per unit, with a four-year exercise period and anti-dilution protections. The warrants include “Black Scholes” protection, a feature that can adjust the warrant terms in certain corporate transactions.
Exit Financing Arranged
To fund its post-bankruptcy operations, the reorganized company entered into a $180 million senior secured credit facility consisting of a $150 million term loan and a $30 million delayed draw term loan available through April 2027. The term loan carries an interest rate of SOFR plus 7.50% (with a 1% SOFR floor), with the option to pay interest in kind at a premium during the first year. The facilities mature on July 19, 2031, and are secured by substantially all assets of the borrower and its guarantors.
Governance and Leadership
The board of the reorganized parent consists of five managers: Robert W. Leasure Jr., Michael Harrington, Nigel Brown, Eugene Davis, and John T. Young Jr., all of whom served on the prior board. Leasure continues as chief executive officer and president, while Beth A. Taylor remains chief financial officer and Andrea Castetter stays on as general counsel. John Sagartz, the chief strategy officer, and Adrian P. Hardy, the chief commercial officer, resigned their officer positions on the effective date.
A management incentive plan will reserve up to 10% of the new equity, on a fully diluted basis, for awards to employees and directors, with terms to be determined by the new board.
Auditor Resignation
Ernst & Young LLP resigned as the company’s independent registered public accounting firm effective upon emergence. EY’s reports for fiscal years 2024 and 2025 did not contain adverse opinions but included a going concern explanatory paragraph. The firm noted material weaknesses in IT general controls and elements of the COSO internal control framework that had been previously disclosed.