The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of Surgalign Holdings, Inc. on June 30, 2023. The Court approved the asset purchase agreement between the debtor and Xtant Medical Holdings, Inc., the stalking horse bidder, for the sale of substantially all its assets for a consideration of $5 million in cash, the payment of all Determined Cure Costs to the applicable third parties and assumption of the assumed liabilities. The debtor?s assets include U.S. hardware and biomaterials business and the equity interests in non-Debtor entities related to the Debtors?

hardware business outside of the U.S. To qualify as a qualified bidder, interested parties should submit their bids by July 26, 2023. The initial minimum overbid should be in the amount of $0.05 million more than the initial purchase price. If the debtor receives any qualified bids, then it would hold an auction for its assets on July 28, 2023.

At the auction, the subsequent bids would be in increments of $0.05 million. The stalking horse bidder would be entitled to a break-up fee of $0.15 million and expense reimbursement of $0.15 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for August 8, 2023.

Sale closing shall occur on September 1, 2023. The buyer is represented by Fox Rothschild LLP as its legal counsel.