BioXcel Therapeutics Files Chapter 11 With $107M in Debt

BioXcel Therapeutics, Inc. filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on August 28, 2026, after missing an August 21 deadline to refinance the $107.2 million it owes Oaktree-affiliated lenders.

Why it matters: Trade creditors face near-total loss unless a rival bid tops Teva’s stalking-horse offer for BioXcel’s assets.

What forced BioXcel into Chapter 11

BioXcel’s liquidity crisis traces to a credit agreement deadline it could not meet in time.

• BioXcel missed the August 21, 2026 deadline set by the Twelfth Amendment to its Oaktree credit agreement to either repay its debt or line up an alternative capital solution acceptable to lenders.
• Cash, cash equivalents, and restricted cash fell to $13.8 million as of June 30, 2026, down from $28.8 million at the start of the year, funding operations only through August.
• Negative working capital reached $108.4 million and stockholders’ deficit hit $115.5 million as of the same date, with $107.2 million in aggregate principal outstanding under the credit agreement.

What the Teva stalking-horse bid means for BioXcel’s assets

BioXcel is running its Chapter 11 case as an asset sale, not a reorganization.

• BioXcel signed a stalking-horse agreement to sell IGALMI (dexmedetomidine) sublingual film and its pending at-home BXCL501 application to Teva, with the company stating it will sell to the highest or best bidder at auction.
• The company secured a commitment for $19 million in debtor-in-possession financing from its existing Oaktree-affiliated lenders, subject to court approval, to fund operations and the case.
• IGALMI, BioXcel’s sole FDA-approved product for acute agitation in bipolar I, bipolar II, and schizophrenia, will remain available to patients throughout the proceedings.

What trade creditors and vendors can expect to recover

The gap between BioXcel’s disclosed assets and liabilities points to a thin recovery for anyone behind Oaktree in line.

• BioXcel’s petition estimates its assets at $10 million to $50 million against liabilities of $100 million to $500 million, a range that leaves little room below Oaktree’s $107.2 million secured claim.
• Oaktree’s secured position and the priming DIP loan both sit ahead of unsecured trade creditors in the distribution waterfall set by the Bankruptcy Code, the same waterfall that left BFG Supply’s trade creditors facing zero recovery earlier this month.
• Vendors that delivered goods to BioXcel in the 20 days before the August 28, 2026 petition date can assert an administrative priority claim under Section 503(b)(9), which ranks above general unsecured claims.

What to do now

Suppliers and creditors with exposure to BioXcel should move on these steps before the claims bar date is set.

1. Identify any goods delivered to BioXcel within 20 days of the August 28, 2026 petition date and prepare a Section 503(b)(9) claim.
2. Review shipping records for reclamation rights on goods delivered shortly before the filing.
3. Monitor the DIP budget and the Teva sale timeline in court filings to gauge whether a competing bid emerges at auction.
4. Review what a nonpayment insurance policy actually covers, then contact Securitas Global Risk Solutions before extending further terms to BioXcel or its affiliates.
5. For any customer still living on lender extensions and missed deadlines the way BioXcel was before August 28, watch for the same concentration and payment-behavior signals before a filing puts you behind a secured lender’s DIP loan.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.