Motion for Asset Sale Filed by Valeritas Holdings, Inc.
February 10, 2020 at 12:00 am EST
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Valeritas Holdings, Inc. filed a motion in the US Bankruptcy Court for the sale of substantially all its assets on February 10, 2020. The debtor seeks the Court’s approval for the sale of substantially all its assets to Zealand Pharma A/S, the stalking horse bidder, for a purchase price of $23 million in cash plus assumed liabilities pursuant to the asset purchase agreement, dated February 9, 2020. To qualify as a qualified bidder, interested parties should submit their bids by March 12, 2020, along with good-faith deposit in the amount of 10% of the aggregate value of the cash and non-cash consideration of the bid. The initial minimum overbid should be no less than the value of the bid protections, plus a value equal to $0.75 million. The debtor has scheduled an auction on March 17, 2020. 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 3% of purchase price i.e. $0.69 million and expense reimbursement of $1 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for March 20, 2020. The sale closing shall be occurred on April 2, 2020. The proceeds from the sale would be used to, satisfy the DIP loans, be used in accordance with the terms of a settlement with the debtors prepetition secured lenders, to pay any sale or transaction fee payable to the debtors professionals as a result of the sale, be used to pay the bid protections, if applicable; and otherwise be paid over to the debtors for distribution in accordance with the priorities set forth in the bankruptcy code.
Valeritas Holdings, Inc. is a United States-based medical technology company. The Company's product, V-Go Wearable Insulin Delivery device (V-Go), is a wearable, basal-bolus insulin delivery device for adult patients requiring insulin that enables patients to administer a continuous preset basal rate of insulin over 24 hours. V-Go is a small wearable and completely disposable insulin delivery device that a patient adheres to his or her skin every 24 hours. V-Go enables patients to closely mimic the body's normal physiologic pattern of insulin delivery throughout the day and to manage their diabetes with insulin without the need to plan a daily routine around multiple daily injections. It has developed V-Go utilizing its h-Patch platform as a patient-focused solution to address insulin therapies. Its h-Patch platform facilitates the subcutaneous delivery of injectable medicines to patients across a range of therapeutic areas.