Aceto is in a mature liquidation posture: the operating restructuring path has already moved from the chapter 11 filing into a debtor-sponsored joint liquidation plan, with post-confirmation governance reflected in the plan supplement and later litigation activity around confirmation. The case began on February 19, 2019, when Aceto and affiliates filed chapter 11 in New Jersey after carrying a capital structure that included a $120 million term loan and $85 million revolver under a Wells Fargo-agented A&R credit agreement, a $143.75 million convertible-note obligation, a $50 million deferred payment obligation tied to the Citron/Lucid acquisition, and a smaller mortgage on the Port Washington property, as described in the Roof first-day declarationDkt. 19.
The filing followed a business profile built around sourcing, marketing, and distributing generic pharmaceuticals, nutraceuticals, active pharmaceutical ingredients, and specialty chemicals without internal manufacturing capacity. That model left the debtors dependent on a broad supplier base and operating across multiple product channels while servicing secured bank debt, unsecured convertible notes, and acquisition-related obligations. The voluntary petitionDkt. 1 opened the chapter 11 cases with plan exclusivity running into June 2019, and the first-day record supplied the core capital-structure baseline for why the cases needed a court-supervised balance-sheet and asset-resolution process.
By July 2019, the debtors’ path had crystallized around liquidation rather than a go-forward standalone reorganization. Aceto filed the , identified in the case data as the “Second Modified Joint Plan of Liquidation of Aceto Corporation and Its Affiliated Debtors,” with the debtors as plan sponsor and three classes. The post-confirmation machinery was then filled in through the , which attached materials including a supplemental notice of assumption, final oversight-committee designation, and plan administrator agreement.
The remaining case posture is therefore not an operating turnaround but administration of a liquidating estate and related litigation. The docket context shows adversary activity both before and after the plan process, including Aceto-side claims against Aurobindo-related defendants in the Aurobindo adversary complaintDkt. 1 and a later revocation-of-confirmation adversary filed by Kenneth Grossman and Palm Global Small Cap Master Fund against post-sale and related parties in the revocation adversary complaintDkt. 1. No near-term hearing dates are supplied in the context pack, so the high-signal milestone is post-confirmation liquidation administration and litigation follow-through rather than a pending sale, financing, or confirmation hearing.
