Teligent, a New Jersey-based specialty generic pharmaceutical company, filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware to pursue a sale process that is intended to maximize the value of the company.

The company began a marketing process ahead of the Chapter 11 filing to determine the level of market interest and said it is in ongoing discussions with several interested parties. The company expects to consummate a sale of the entire business or its core assets by early 2022. Meanwhile, Teligent’s Canadian affiliate, Teligent Canada, will be pursuing an out-of-court sale process.

In connection with the filing, Teligent appointed Vladimir Kasparov, managing director at Portage Point Partners, chief restructuring officer. Kasparov will oversee the business and its restructuring process, working with the Teligent leadership team, including previously appointed interim CFO Alyssa Lozynski and the company’s board of directors to execute the company’s business strategy and conduct a value-maximizing sale process. Kasparov has experience in managing financial and operational restructurings, including providing interim management services and stepping into officer roles to preserve and maximize value during restructurings and operational turnarounds.

Furthermore, the company appointed Bradley E. Scher to its board of directors. Scher is the founder and managing member of Ocean Ridge Capital Advisors and has served in a variety of crisis and interim management roles. In addition, Tim Sawyer, CEO of Teligent, and Philip Yachmetz, chief legal officer and executive vice president of the company, resigned on Oct. 8.

“The entire Teligent team has worked diligently over the past year to address market trends, our debt structure and operational hurdles that have challenged our business. While this is not the outcome we envisioned, we are confident that Teligent’s business includes a strong portfolio of specialty generic prescription assets and believe a sale is the best opportunity to maximize value,” John Celentano, the chairman of Teligent’s board of directors, said. “On behalf of the entire Teligent board of directors, I’d like to thank Tim and Phil for their dedication and hard work on behalf of the company throughout their tenures. We welcome Vlad, Alyssa and Brad to the team and look forward to partnering with them as we pursue the company’s strategy and a value-maximizing sale.”

The company filed various first-day motions with the bankruptcy court requesting customary relief that will enable the company to transition into Chapter 11 without disruption to its ordinary course operations. Teligent expects these motions to be approved within the first few days of the case.

In order to fund and preserve its operations during the Chapter 11 process, the company is arranging $12 million in debtor-in-possession financing from its senior secured lenders. Upon approval by the bankruptcy court, the DIP financing will provide the company with the necessary liquidity to operate in the normal course and cover administrative expenses throughout the Chapter 11 process.