Graceway Wins Approval for Auction With Galderma’s $275 Million Lead
Created 10/18/2011 - 11:59
- Graceway Pharmaceuticals won approval to sell virtually all its assets at auction, Bloomberg reported Tuesday.
- US Bankruptcy Judge Peter J. Walsh gave the company permission to hold a November 17 auction to see if anyone can beat the $275 million lead bid from Galderma.
- “We believe there will be more than one bidder and hope that the price will rise,” Graceway lawyer Josef S. Athanas said.
- Graceway listed debt of as much as $1 billion and assets of as much as $500 million in Chapter 11 documents filed in September.
- A drop in sales following the loss of patent protection on its top-selling product led to the bankruptcy, the company said.
- Graceway owes first-lien lenders about $430.7 million, about $330 million to second-lien lenders and about $81.4 million to unsecured mezzanine lenders.