05:32 AM EDT, 04/03/2024 (MT Newswires) -- (Updates with the stock move in the headline and the first paragraph.)

Acorda Therapeutics ( ACOR ) shares sank more than 25% in premarket activity Wednesday, extending its 81% plunge in Tuesday's regular trading session, following its recent agreement to sell substantially all its assets to Merz Therapeutics for $185 million.

The company said late Monday that it filed voluntary petitions to start Chapter 11 proceedings in the US Bankruptcy Court for the Southern District of New York to facilitate the sale process.

The company said the sale will likely conclude in June.

Acorda also signed a restructuring agreement with the holders of over 90% of its 6% convertible senior secured notes due 2024 to set out milestones and conditions relating to the sale process.

Acorda plans to continue operations while it works to complete the process. It said patient access to the Inbrija and Ampyra medications will continue "uninterrupted."

Merz Therapeutics is part of the family-owned Merz company headquartered in Frankfurt am Main, Germany.

Price: 1.86, Change: -0.64, Percent Change: -25.60