“Naked” Section 363 Sales in Restructurings of Life Sciences Companies May Maximize Value
Author: Ari B. Blaut.; Benjamin S. Beller.
Source: Volume 40, Number 11, November 2024 , pp.117-119(3)

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Abstract:
While a stalking horse bidder can effectively set a price floor and provide structure for a section 363 sale process, a stalking horse is not right in all cases, in particular in industries and situations where price discovery is difficult and where the range of value from buyers is particularly wide and buyer-dependent. A recent trend of “naked” section 363 sales shows that stakeholders should not take a one-size-fits-all approach and may need to look beyond the standard playbook to maximize value.Keywords: Chapter 11 Bankruptcy Filings; Biotech and Life Science Bankruptcies; Third-Party Sales
Affiliations:
1: Sullivan & Cromwell, LLC; 2: Sullivan & Cromwell, LLC.