Nostrum Laboratories, Inc., a Kansas City, Missouri–based generic pharmaceutical manufacturer with approximately 94 employees, filed for Chapter 11 protection on September 30, 2024 in the U.S. Bankruptcy Court for the District of New Jersey (Case No. 24-19611, Judge John K. Sherwood) after accumulating approximately $68.3 million in debt under a prepetition secured credit facility with Citizens Bank. The company carried out a 363 liquidation sale process culminating in a multi-buyer auction on April 1, 2025, with the court approving the sale of ANDA portfolios, manufacturing equipment, and real property to 11 separate purchasers including Chartwell Pharmaceuticals ($4.6M), Strides Pharma ($2.1M), and Everest. The debtor operated on a payroll-only DIP facility of $235,000 at 8% interest limited to employee compensation. Recovery to general unsecured creditors is unknown pending asset sale completion and proceeds distribution.
