Impel Pharmaceuticals Inc. filed a motion in the US Bankruptcy Court for the sale of its substantially all its assets on December 20, 2023. The debtor seeks the Court?s approval for the sale of substantially all its assets to JN Bidco LLC, the stalking horse bidder, for a purchase price of $17.5 million in cash pursuant to the asset purchase agreement, dated December 18, 2023. To qualify as a qualified bidder, interested parties should submit their bids by January 23, 2024, along with good-faith deposit in the amount of 2.6% of the bid price.

The initial minimum overbid should be more than the initial purchase price. The debtor has scheduled an auction on January 29, 2024. At the auction, the subsequent bids would be in increments of $0.25 million.

The stalking horse bidder would be entitled to a break-up fee of $0.45 million and expense reimbursement of $0.3 million in case of termination of the asset purchase agreement. The bid procedure hearing is scheduled for January 10, 2024 and sale hearing is scheduled for February 1, 2024. The proceeds from the sale would be used to pay off the amount owed to the debtor?s pre-petition lender.

The sale is expected to close by February 12, 2024.