Eagle Pharmaceuticals says in default under credit agreement

In a regulatory agreement, Eagle Pharmaceuticals said: “Under the terms of the Third Amended and Restated Credit Agreement, dated November 1, 2022, among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, as amended by that certain Limited Waiver and First Amendment Agreement to the Third Amended and Restated Credit Agreement, dated as of January 12, 2024, as further amended by that certain Second Amendment to Third Amended and Restated Credit Agreement, dated as of February 29, 2024, as further amended by that certain Third Amendment to Third Amended and Restated Credit Agreement, dated as of May 14, 2024, and as further amended by that certain Limited Waiver and Fourth Amendment to Third Amended and Restated Credit Agreement, dated as of August 26, 2024, the Company was required to, among other things, deliver to the Administrative Agent and the Lenders, by not later than September 30, 2024, (a) annual audited financial statements for the fiscal year ended December 31, 2023, reported on by the Company’s independent public accountant to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Company and its consolidated subsidiaries in accordance with GAAP, (b) restated quarterly financial statements for the fiscal quarter ended June 30, 2023, (c) quarterly financial statements for the fiscal quarters ended September 30, 2023, March 31, 2024, and June 30, 2024 and (d) concurrently with delivery of each of the financial statements referred to in the foregoing clauses (a) through (c), a certificate by one of its officers that such financial statements present fairly in all material respects the financial condition and results of operations of the Company and its consolidated subsidiaries in accordance with GAAP for the respective fiscal period. As a result of the matters described in Item 4.02 above, the Company is not able to satisfy the Existing Reporting Requirements, which such failure constitutes an event of default under the Credit Agreement. Further, in connection with the non-reliance determination described in Item 4.02, the Company has concluded that the financial statements for the fiscal periods within the Non-Reliance Period previously delivered to the Administrative Agent and the Lenders did not present fairly in all material respects the financial condition and results of operations of the Company and its consolidated subsidiaries for the reasons described above and were not prepared in accordance with GAAP, which gave rise to an event of default under the Credit Agreement. During the continuance of an event of default, the Administrative Agent may, with the consent of the required Lenders, and shall, at the request of the required Lenders, by notice to the Company, terminate undrawn commitments, declare the loans then outstanding to be due and payable in full and/or exercise other remedies available to it, among other things. In addition, the Company’s obligations under the Credit Agreement are secured by a pledge of substantially all of the Company’s and its subsidiaries assets. If the Company is unable to pay its obligations, the Administrative Agent on behalf of the Lenders could proceed to protect and enforce their rights under the Credit Agreement, including by foreclosure on the assets securing the Company’s obligations under the Credit Agreement. If certain bankruptcy related events of default specified in the Credit Agreement occur, the commitments will be terminated and the obligations of the Company under the Credit Agreement will become due and payable automatically without any action by the Administrative Agent or the Lenders. The foregoing would materially and adversely affect the Company’s business and financial condition. The Company is in discussions with the Lenders regarding the foregoing matters.”