Karyopharm Files for Chapter 11 to Carry Out Ayrmid Merger Backed by Lenders

Karyopharm Therapeutics (Nasdaq: KPTI) and a subsidiary filed for Chapter 11 bankruptcy protection on Nov. 2, 2026, the company said in an 8-K filed that night. The cases were filed in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. The company also said it had signed a restructuring support agreement with its lenders, noteholders and other investors, and with Ayrmid Ltd., the parent of Gamida Cell Inc., which would serve as stalking horse bidder for a merger. An earlier report on the same filing covers the bankruptcy filing in more detail.

What the plan does for debt holders

Under the prepackaged plan, claims under the first-lien term loan, the 1.5-lien 2028 notes and the second-lien 2029 notes, about $276 million in total, would be exchanged for 55% of the common stock of the combined company, called NewCo, subject to dilution. Ayrmid's existing equityholders would receive the remaining 45%. The company said NewCo would emerge with no more than $135 million of funded debt under a new exit term loan, a reduction of about $141 million.

The royalty investors' claims would be replaced by an unsecured royalty of 3.0% of net revenues from products containing selinexor for five years after the effective date. The new royalty agreement includes a liquidated damages provision of $18,750,000.

What happens to shareholders

All existing equity interests in Karyopharm, including the Series A convertible preferred stock, common stock, warrants, options, restricted stock units and performance stock units, would be canceled and receive no distribution under the plan. The company's last close before the filing was $0.11, giving it a market value of about $2.5 million based on 22.7 million shares as of Aug. 6, 2026.

Sale alternative and the timeline

The company said the case is not limited to the merger. A court-supervised sale process would continue, and a qualified bid would need net proceeds at closing of at least $335,384,812, along with payment in full of general unsecured claims, bid protections and a wind-down budget. The company said it would announce which path it will pursue by filing a sale transaction election notice before a deadline. Holders of the eligible claims have until 4:00 p.m. Central time on Nov. 30, 2026, to return ballots accepting the plan. The bankruptcy court must still approve the disclosure statement and confirm the plan.

The company said general unsecured claims would not be impaired and would be paid in the ordinary course. The debtors have also asked the court to approve a $55 million new-money debtor-in-possession facility to fund operations during the cases; the filing does not say the court has yet ruled on that request.

The company's recent results

Karyopharm reported revenue of $146.1 million for 2025, up 0.6% from the prior year, but its net loss widened to $196.0 million from $76.4 million. In the quarter ended June 30, 2026, revenue fell 12% to $33.4 million, and the net loss was $67.0 million, compared with $37.3 million a year earlier. At June 30, the company held $55.0 million in cash and equivalents and $10.1 million in short-term investments, or $65.1 million combined.

The filing also attaches a disclosure statement that describes the company's position as a commercial-stage pharmaceutical company. Its lead product, XPOVIO, is approved in two multiple myeloma indications, and a supplemental application for myelofibrosis was submitted to the FDA on Aug. 31, 2026.