Insys Therapeutics bankruptcy news for Wednesday has INSY stock heading higher.
Insys Therapeutics (NASDAQ:INSY) notes that it now has approval from the U.S. Bankruptcy Court for the District of Delaware for its First Day motions. It received this approval on Tuesday, but only just announced the news today.
This approval will allow the company to move forward with its Insys Therapeutics bankruptcy plans. This marks a move in the right direction for the company as it looks to use the bankruptcy protection to cover its legacy legal liabilities.
With the First Day motions approval, Insys Therapeutics will be able to continue operations throughout the bankruptcy process. This includes it continuing to pay employees for their work. It will also let the company keep paying its vendors.
“This is an important step forward in our court-supervised process, which is intended to fairly and transparently address the Company’s legacy legal liabilities,” Andrew Long, CEO of Insys Therapeutics, said in a statement. “I would like to thank our team for their continued hard work and dedication as we move forward with our asset sale process.”
The Insys Therapeutics bankruptcy won’t just have the company selling off some of its assets to cover its legal costs. Instead, it will be selling “substantially all” of its assets during the process.
INSY stock was up 189% as of noon Wednesday, but is down 96% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.