Form 8-K for ADOLOR CORP
9-Jun-2009
Costs Associated with Exit or Disposal Activities, Other Events, Financial Statements
Item 2.05 Costs Associated with Exit or Disposal Activities.
On June 3, 2009, management of Adolor Corporation (the "Registrant"), upon the approval of the Board of Directors of the Registrant, announced a restructuring and reduction in force (the "Restructuring") of approximately 45 employees, or 28% of its workforce, as well as other cost saving initiatives intended to lower the Registrant's annualized net operating cash burn. The Restructuring has been completed as of June 3, 2009.
The Registrant has determined that the total costs related to the Restructuring are estimated to be up to approximately $6.0 million, of which approximately $2.5 million will result in future cash outlays primarily related to severance costs and related expenses. The remaining costs are expected to be non-cash charges associated with the write-off of certain leasehold improvements and fixed assets, among other things. The Registrant expects to record these charges in the second quarter of 2009 in accordance with Statement of Financial Accounting Standards No. 146, Accounting for Costs Associated with Exit or Disposal Activities, and Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.
Item 8.01 Other Events.
On June 3, 2009, the Registrant issued a press release announcing the Restructuring. A copy of the press release is furnished hereto as Exhibit 99.1 and incorporated herein by reference.
surf's up......crikey
