Biora Therapeutics Takes Crucial Step Towards a Stronger Future
In a significant move, Biora Therapeutics (BIOR) has reached a financing agreement with certain prepetition creditors to support a chapter 11 sale process. This strategic decision is expected to lead to a strengthened balance sheet, enabling the company to propel its next stage of product development.
A New Chapter for Biora
To facilitate this transaction, the company has voluntarily filed a petition under chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. Despite this development, Biora expects to operate its business as usual, with the lenders providing a debtor-in-possession financing facility of up to $10.25 million, subject to court approval. This funding will ensure the company meets its obligations to vendors, suppliers, employees, and other stakeholders during the chapter 11 case.
A Swift and Efficient Sale Process
Biora intends to file a motion requesting approval of a marketing and sale process, which is expected to occur on an expedited timeline. This swift process will help minimize any potential adverse impact on the company’s operations, vendors, and employees, allowing it to quickly emerge from the sale in a strong position to continue clinical development of its products.
A Competitive Bidding Process
The Bid Procedures Motion will facilitate a competitive bidding process under section 363 of the Bankruptcy Code, designed to achieve the highest or otherwise best value for Biora and its stakeholders. The lenders have agreed to serve as a stalking horse bidder for the company’s assets, ensuring a robust bidding process.
Business as Usual
The company has filed customary motions with the court to authorize ongoing operations, including the timely, uninterrupted payment of employee wages, salaries, and benefits. Vendors and suppliers can expect to be paid in full under normal terms for goods and services provided during the chapter 11 case. These motions are expected to be approved in the coming days, ensuring a seamless transition for all stakeholders.
A Brighter Future Ahead
By taking this proactive step, Biora Therapeutics is poised to emerge from this process with a strengthened balance sheet, ready to propel its product development forward. With a swift and efficient sale process in place, the company is well-positioned to continue its mission of delivering innovative products to the market.
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