aaiPharma Inc. Files Chapter 11 Plan Of Reorganization

WILMINGTON, N.C.--(BUSINESS WIRE)--Nov. 7, 2005--AAIPharma Inc. (PINK SHEETS:AAIIQ.PK) announced today that the Company and its domestic subsidiaries filed a Plan of Reorganization and corresponding Disclosure Statement with the United States Bankruptcy Court for the District of Delaware. The chapter 11 plan that the company has filed is the product of extensive negotiations among the Company, the Official Committee of Unsecured Creditors and the advisors to an Ad Hoc Committee of the Company's Secured Noteholders. The Plan has the support of the Official Committee of Unsecured Creditors and based upon discussions with the advisors to the Ad Hoc Committee, the Company believes that the Ad Hoc Committee will support the chapter 11 plan. These committees represent the company's key creditor constituencies. AAIPharma and its domestic subsidiaries filed for chapter 11 bankruptcy protection on May 10, 2005, and successfully completed the sale of substantially all of the assets of the Company's Pharmaceuticals Division on July 25, 2005.