Karyopharm Therapeutics Inc. has filed voluntary petitions for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. The filing, dated November 2, 2026, was submitted by the Company and its subsidiary, KPT Texas LLC. The company intends to operate as a debtor-in-possession under the jurisdiction of the court while it seeks to restructure its obligations.
The company entered into a Restructuring Support Agreement with its existing lenders and noteholders, certain investors under its Revenue Interest Financing Agreement, holders of its 0% Series A Convertible Perpetual Preferred Stock, and Ayrmid Ltd. Under this agreement, Ayrmid has been designated as the stalking horse bidder for a proposed merger with the reorganized Company. The agreement provides for the restructuring of the company's funded debt, which consists of loans under the Credit and Guaranty Agreement and 2028 and 2029 Notes.
The proposed transaction, detailed in an Ayrmid Term Sheet, would result in the cancellation of all existing equity interests in the Company, including common stock and the Convertible Preferred Stock, with no distribution to holders. Holders of the company's funded debt and DIP lenders would receive 100% of the common stock of the reorganized Company, which would be exchanged for 55% of the common stock of a new entity, NewCo. Ayrmid's existing stockholders would receive the remaining 45% of NewCo's common stock.
The company also filed a Joint Prepackaged Chapter 11 Plan of Reorganization, which is supported by holders of 100% of the outstanding claims for the 1L Term Loans, 1.5L 2028 Notes, 2L 2029 Notes, and RIFA Claims. The plan is subject to court approval and a solicitation of votes from these claimholders, with a voting deadline of November 30, 2026. The company has engaged Centerview Partners LLC to advise on its strategic options and the sale of assets.
