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Executive Summary

Inotiv entered into a Second Supplemental Indenture to extend the grace period for its missed $2.139M interest payment on $140M 3.25% Convertible Senior Notes due 2027 from 44 to 51 days (now through June 5, 2026), following consent from a majority of noteholders. This is the second extension in two weeks, signaling acute liquidity distress and an inability to cure the payment default, which increases the risk of acceleration or restructuring.

Key Facts

• Inotiv missed a ~$2.139M interest payment due April 15, 2026 on its $140M 3.25% Convertible Senior Notes due 2027.
• The grace period was first extended from 30 to 44 days (to May 29) via a First Supplemental Indenture on May 15, 2026.
• This Second Supplemental Indenture extends the grace period further to 51 days total, through June 5, 2026.
• The extension required consent from holders of a majority in aggregate principal amount of the outstanding notes.
• The cross-filing context reveals a $40M Bridge Facility was established on May 14, 2026, and all revolving commitments were terminated, indicating a comprehensive debt restructuring effort.
• The company has a market cap of only ~$10M, making the $140M note principal a massive overhang.

Financial Impact

Missed $2.139M interest payment on $140M convertible notes; second grace-period extension in two weeks; $40M bridge facility established to replace revolving credit line.

Risk Factors

• Failure to cure the interest payment default by June 5, 2026 could trigger acceleration of the entire $140M note principal.
• The $40M bridge facility may be insufficient to address the broader liquidity crisis.
• Potential for a distressed debt exchange or in-court restructuring that would wipe out common equity holders.
• Nasdaq delisting risk if the company cannot maintain listing standards amid financial distress.

Market Snapshot

Investment Themes

Documents Analyzed

This report is based on 5 SEC documents filed with EDGAR.

US Market Status