05:56 AM EDT, 04/02/2024 (MT Newswires) -- (Updates to include Acorda's recent stock movement in the headline and the first paragraph.)

Acorda Therapeutics ( ACOR ) shares fell more than 61% in recent premarket activity on Tuesday after saying it has signed an 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, which has headquarters in Frankfurt am Main, Germany.

Price: 5.15, Change: -8.33, Percent Change: -61.80