Biora Therapeutics, Inc. (Case No. 24-12849) filed a motion Thursday in the U.S. Bankruptcy Court for the District of Delaware seeking approval of bidding procedures for the sale of substantially all of its assets. The San Diego-based preclinical stage medical technology company, represented by McDermott Will & Emery LLP, is pursuing a sale process with its DIP lenders serving as the stalking horse bidder.
The proposed stalking horse bid includes a credit bid of not less than $30 million of outstanding DIP facility obligations, plus the assumption of certain liabilities. The company has set a bid deadline of February 18, 2025, with a potential auction scheduled for February 20, 2025.
Biora, which focuses on developing innovative smart pills for oral delivery of biotherapeutics, filed for Chapter 11 protection on December 27, 2024. The company currently employs more than 30 people and is developing two primary products, BIOjet and NAVIcap.
The sale timeline reflects the company's urgent need to preserve value, with MTS serving as the investment banker having already contacted approximately 70 potential investors. The proposed procedures include a $500,000 minimum overbid requirement and detailed provisions for the assumption and assignment of contracts.
The motion is scheduled for hearing on January 27, 2025, with objections due by January 20, 2025. The case is being overseen by Judge Brendan L. Shannon.
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