Financial Restructuring

Our News

On July 20, 2026, Alkegen announced that we have entered into a transaction, known as a Restructuring Support Agreement or an RSA, with a group of our key financial partners to position our business for long-term success and continued industry leadership.

Through this agreement, we have secured $315 million of new capital to continue to support ongoing capital improvements and strategic investments and expect to meaningfully reduce our debt by $3.1 billion. To implement the transactions and new capital injection as efficiently as possible, Alkegen expects to file prepackaged chapter 11 cases in the coming days.

Chapter 11 is a commonly used court-supervised process in the U.S. that allows companies to restructure their financial position while continuing to operate in the ordinary course of business. For Alkegen, this process is focused on right-sizing our capital structure, not restructuring our operations. Importantly, the steps we have taken to secure the support of the overwhelming majority of our financial partners position us to progress through this process efficiently, in approximately 60 days.

 

What This Means

Rest assured, Alkegen is here to stay, and it is business as usual across our global operations. Through this process, we will be well-positioned to seize new growth opportunities, invest in the next generation of our product portfolio, and enhance our market leadership.

Importantly, this process has no impact on our employees’ day-to-day roles and responsibilities. Our team remains singularly focused on continuing to deliver at the highest levels for our customers and supporting our vendor relationships by making all payments as usual throughout the entire restructuring process.

 

Questions

Please refer to the following frequently asked questions for more information about our restructuring process.

  • With further questions about the restructuring process, please contact our solicitation and claims agent, Kroll, at (888) 349-3237 (US and Canada toll free) and +1 (332) 230-1843 (International), or by emailing AlkegenInfo@ra.kroll.com.
  • With further business-related questions, please reach out to your usual Alkegen contact.

 

Frequently Asked Questions

General

What did Alkegen announce?

  • On July 20, 2026, Alkegen announced that it entered into a Restructuring Support Agreement (“RSA”) with a group of the Company’s key financial partners to strengthen its balance sheet and position the Company for continued industry leadership.
  • This agreement provides a clear path to eliminate $3.1 billion of debt and secure $315 million of new capital to continue to fund capital improvements and strategic investments.
  • To implement the transaction and new capital injection as efficiently as possible, Alkegen will voluntarily file “prepackaged” chapter 11 cases in the coming days.

Why is Alkegen taking this step?

  • Alkegen has been on a path to strengthen our financial foundation, and after exploring various pathways for the business, we believe that this transaction and the chapter 11 process will provide the best path to significantly reduce our debt and improve our balance sheet while continuing to operate in the ordinary course.
  • We are confident that on the other side of this process, Alkegen will be well-positioned to enhance our leadership in thermal management and filtration solutions, invest in the next generation of our product offerings, and support our global client base well into the future.

What does the future hold for Alkegen?

  • With an improved balance sheet, Alkegen will be well-positioned to continue providing world-class products to our customers and investing in the next generation of our portfolio.
  • We will continue to operate in the ordinary course throughout this process and remain committed to delivering for our customers and supporting our employees every step of the way.
  • Importantly, we expect to emerge from this process with a significantly stronger balance sheet and approximately $200 million in available liquidity, positioning us to pursue meaningful opportunities to profitably grow our business and invest approximately $70 million in capital improvements in 2026, with an additional ~$300 million anticipated through 2030.

What is a Restructuring Support Agreement (“RSA”)?

  • An RSA is an agreement between a company and its key stakeholders which sets forth the terms of certain restructuring transactions and the processes by which such transactions can be accomplished.

What is chapter 11?

  • Chapter 11 is a commonly-used court-supervised process in the U.S. that allows companies to restructure their financial position while continuing to operate in the ordinary course of business.
  • For Alkegen, this process is focused on improving the Company’s capital structure, not restructuring its operations.
  • Many well-known companies have used the chapter 11 process to restructure their balance sheet and have emerged stronger.

What is a solicitation process and what does it entail?

  • Solicitation is the process by which creditors review terms of a proposed restructuring plan and formally vote on the plan.
  • As part of implementing the RSA, through which Alkegen has secured the votes of a supermajority of its lenders, Alkegen has launched a solicitation process to formally record the votes of those and other creditors on the proposed Plan of Reorganization.
  • In the coming weeks, Alkegen expects to commence a chapter 11 process in the United States, during which the Company will finalize the solicitation process to obtain court approval of the plan and implement the restructuring transaction.

How much debt will Alkegen have at the end of this process?

  • Through this restructuring, Alkegen expects to reduce its total debt from $3.5 billion to $400 million, significantly strengthening the Company’s balance sheet, and positioning it for continued industry leadership.

How long will this process take?

  • Alkegen intends to file for chapter 11 in the coming days and expects to complete the court-supervised process efficiently, in approximately 60 days.

 

Customers

How does this impact our relationship?

  • It is business as usual across our company, and the work underway has no impact on our ability to continue delivering for our customers at the highest levels.
  • Pursuant to the RSA, existing contracts will largely be assumed as part of the restructuring, and we are not making any changes to commercial arrangements as a result of this announcement.
  • Existing agreements, pricing, and contract terms remain in place and are not affected by the anticipated chapter 11 process.
  • We are deeply grateful for our customers’ trust in our business, and we are laser focused on continuing to serve our customers with full continuity to deliver top results.

Why should I continue doing business with Alkegen?

  • Alkegen is here to stay, and through this process, we will be better equipped to seize new opportunities, leveraging a stronger financial foundation to enhance our market leadership and drive continued innovation for customers.
  • This announcement represents an important step forward in strengthening Alkegen’s capital structure and positioning the Company for continued industry leadership.
  • Alkegen’s business is healthy, and our ability to deliver for customers at a high level is unchanged. Specifically, we expect to reduce our total debt by $3.1 billion and exit the restructuring with $200 million of available liquidity, significantly deleveraging our balance sheet and reinforcing our financial foundation.
  • Further, we are investing approximately $70 million this year in our plants to improve quality, reliability, efficiency, and safety. Our long-range business plan, which is supported by this restructuring, includes another $300 million in capital investment in our plants over the next four years to support the deployment of new capabilities and capacity to better serve our customers.

Will this affect my current orders? 

  • No. Open orders, active programs, and upcoming launches are on track.
  • We ask that customers continue to engage with our teams as usual and we will continue to provide the same high level of service customers have come to expect.

Can I continue to place new orders?

  • Yes. As we move through this process, customers should continue to place orders and submit payments as normal.
  • Customers should continue to engage with our team as usual, and we will continue to provide the same high level of service customers have come to expect.

Does Alkegen have sufficient liquidity to continue operations?

  • Yes. Alkegen has sufficient liquidity to continue operating in the ordinary course of business and delivering for customers at the highest levels.
  • Through this transaction, Alkegen expects to eliminate $3.1 billion of debt and has secured $315 million of new capital to continue to fund capital improvements and strategic investments.

 

Vendors and Suppliers

What does this mean for our relationship?

  • It is business as usual across Alkegen, and we do not anticipate any disruption to production, operations, or our ability to fulfill our commitments to vendors and suppliers under our existing terms.
  • To be clear, we are entering this process to improve our capital structure, not restructure our operations; our base business is healthy and our ability to partner with vendors and suppliers at a high level is unchanged.
  • Importantly, we will continue to maintain operational stability throughout the entire restructuring process.

Does Alkegen have the liquidity to continue to pay me?

  • Yes. Alkegen will have access to ample liquidity to make payments as usual and support ongoing operations throughout the entire restructuring process.
  • As part of this process, we intend to file an “all-trade” motion, granting us explicit court approval to continue paying all vendors in the ordinary course.
  • Through this transaction, Alkegen expects to eliminate $3.1 billion of debt and has secured $315 million of new capital to continue to fund capital improvements and strategic investments into the future.

Will Alkegen pay vendors and suppliers outstanding amounts owed? What about payments for goods and services provided going forward?

  • Yes. Vendors and suppliers will continue to be paid in the ordinary course pursuant to existing terms during this process as the restructuring support agreement supports an “all trade” motion, which will allow us to continue paying prepetition claims during the chapter 11 process.
  • To be clear, this means we will continue making payments to vendors under our agreed terms, including amounts owed and for authorized goods delivered and services provided going forward.

Will there be changes to go-forward payment schedules or processes?

  • No. Our processes have not changed, and vendors and suppliers should continue to submit invoices in the ordinary course of business.
  • There are no changes to our current payment schedules as a result of this announcement.