Company faces October deadline to sell Florida facilities amid government equipment complications
Alachua Government Services Inc., a bankrupt biologics contract manufacturing company, filed a motion with the Delaware bankruptcy court on September 12, 2025, seeking approval for bidding procedures to sell its real and personal property assets in Alachua, Florida. The proposed sale includes a 183,000-square-foot Advanced Development Manufacturing Facility and a 92,000-square-foot expansion facility known as "Building G."
The company, which filed for Chapter 11 bankruptcy protection on July 6, 2025, in the U.S. Bankruptcy Court for the District of Delaware (Case No. 25-11289), specialized in manufacturing vaccines, monoclonal antibodies, recombinant proteins, and nucleic acids before ceasing operations. The court case is being overseen by Judge J. Kate Stickles.
Extensive Marketing Efforts Precede Court Filing
Prior to its bankruptcy filing, Alachua Government Services engaged investment bank Jefferies LLC in February 2025 to explore strategic alternatives. According to court documents, Jefferies conducted an extensive marketing process, reaching out to no fewer than 75 parties, including biopharmaceutical and biotechnology companies and real estate-focused investors. Despite these efforts, the company was unable to secure a going-concern sale before filing for bankruptcy.
Following the bankruptcy filing, the marketing process continued, with Jefferies conducting 16 introductory calls and securing non-disclosure agreements from 24 parties. The company received four indications of interest by the July 29, 2025 stalking horse bid deadline, though negotiations with a potential purchaser stalled due to complications involving government-owned equipment at the facility.
Government Equipment Creates Sale Complications
A significant obstacle to the sale process has emerged in the form of approximately 800 pieces of equipment owned by the U.S. Department of Defense and other governmental agencies currently located at the Alachua site. The uncertainty regarding the removal of this government equipment has delayed the sale process and prevented the company from finalizing a stalking horse agreement with a potential purchaser.
As stated in the court filing, "The uncertainty with removal of the Government Equipment from the Alachua Site has delayed the sale process and precluded the Debtor from finalizing a stalking horse agreement with the Potential Purchaser for the sale of the Assets." The company has filed a separate motion seeking to compel the government to remove the equipment by October 15, 2025, or alternatively, to authorize disposal of such equipment without liability.
Urgent Timeline Driven by Financial Constraints
The company's financial condition necessitates an expedited sale process. Alachua Government Services lacks the liquidity to support maintenance of the Alachua site beyond October 15, 2025, despite having secured debtor-in-possession financing. The company faces significant fixed costs for utilities, insurance, and staffing at the facility.
"There are significant fixed costs in maintaining the Alachua Site, including costs for utilities, insurance, and to maintain the necessary staffing," the company stated in its court filing. "As it was the Debtor's expectation that it would exit the Alachua Site prior to October, the Debtor does not have the liquidity to support maintenance, insurance, utilities, or staffing for an extended period following October 15, 2025."
Proposed Sale Timeline and Procedures
The motion outlines an aggressive timeline for the asset sale process:
- September 19, 2025: Proposed objection deadline for the bidding procedures motion
- October 6, 2025: Bid deadline and sale objection deadline
- October 8, 2025: Auction (if multiple qualified bids are received)
- October 13, 2025: Court hearing to approve the sale
- October 15, 2025: Deadline to close the approved transaction
The bidding procedures require qualified bidders to submit bids with a minimum 10% cash deposit and include provisions for the assumption and assignment of executory contracts and unexpired leases. The company retains the right to designate a stalking horse bidder and provide bid protections, subject to court approval.
Legal Representation and Corporate Structure
Richards, Layton & Finger, P.A. represents Alachua Government Services in the bankruptcy proceedings, with attorneys Mark D. Collins, Michael J. Merchant, Amanda R. Steele, and Matthew P. Milana leading the representation. The company's debtor-in-possession financing is provided by JMB Capital Partners Lending, LLC.
An official committee of unsecured creditors was appointed on July 23, 2025, and will participate in the consultation process for the asset sale. The committee is represented by Goodwin Procter LLP and Robinson & Cole LLP.
The proposed sale represents the company's strategy to wind down operations and maximize value for stakeholders through an orderly liquidation of its manufacturing assets. The outcome will depend on the court's approval of the bidding procedures and the company's ability to resolve the government equipment complications that have thus far hindered the sale process.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 40 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.