Mallinckrodt plc and its debtor affiliates, including Vtesse LLC filed a motion in the US Bankruptcy Court for the sale of certain assets on May 19, 2021. The debtor seeks the Court’s approval for the sale of certain assets to MANDOS LLC pursuant to the asset purchase agreement, dated May 14, 2021. The debtor’s assets include certain assets related to VTS-270, also known as adrabetadex, which is used treat Niemann-Pick Disease, Type C. The purchase price for the sale of assets include a closing payment of $1 million, assumption of liabilities (with cure payment capped at $0.4 million), payment of $0.36 million by the buyer under the terms of transition services agreement, a payment of $1.5 million on receiving approval of FDA for the use of Niemann-Pick Disease, Type C, a payment of $0.5 million on receiving approval to use the product in key regional areas (key regional approval), a one time payment of $5 million to the seller if aggregate worldwide Net Sales of Products exceed $50 million, the buyer shall also make earn-out payment of 3.5% of net sales of primary products during the earn-out term that are within the first $100 million, 5% of net sales of primary products during the earn-out term that are within the next $200 million, 6% of net sales of primary products during the earn-out term that are in excess of $300 million, 1% of net sales of secondary products during the earn-out term that are within the first $100 million, 1.5% of net sales of secondary products during the earn-out term that are within the next $200 million and 2% of net sales of secondary products during the earn-out term that are in excess of $300 million. The sale hearing is scheduled for June 9, 2021. The buyer is represented by Jerry Masoudi of Covington & Burling LLP as legal counsel and the seller, Vtesse LLC, is represented by Stephanie M. Hosler of Bryan Cave Leighton Paisner LLP as legal counsel. The proceeds from the sale transaction will become property of the debtors’ estates and utilized in accordance with the terms of the Plan.