Dendreon landlord of leased warehouse objects to prosed sale timeline

By Kali Hays

New York, Dec. 3 – Owners of leased property included in Dendreon Corp.’s proposed sale of substantially all of its assets, Majestic Airport Center III Building 3, LLC and NM Majestic Holdings, LLC, have objected to the asset sale, according to a Dec. 2 motion filed with the U.S. Bankruptcy Court for the District of Delaware.

Dendreon uses a leased property in Union City, Ga., owned by Majestic as a warehouse for manufacturing, research and development. The proposed bid procedures include a transfer of the lease to a prevailing bidder.

Majestic claims that the bid procedures neither provide “adequate assurance information” pertaining to the transfer of the lease, nor does the proposed sale timeline allow “sufficient time for review” of any purchase offer, according to the objection.

Under the proposed bid procedures, a stalking horse bid for the assets must exceed $275 million and be submitted by Dec. 29.

An approved stalking horse bidder will be entitled to a breakup fee equal to 3% of the purchase price for the assets if it is not the winning bid and expense reimbursement up to $1 million.

All other qualified bids are to be submitted by Jan. 27 and if two or more qualified bids are received, an auction will be held on Feb. 3.

Any initial overbid made at auction must exceed the opening bid by $250,000 and all subsequent bids are required in that amount.

Dendreon intends to present any facts regarding financial credibility and ability of a successful bidder at the sale hearing, but Majestic claims that any information “should be required to be disseminated to any affected landlord and their counsel within 24 hours” of the company receiving such a bid “and certainly no later than the bid deadline.”

Majestic asked that the court order Dendreon to comply with its objections or change the proposed bid procedures.

A hearing to approve the bid procedures is scheduled for Dec. 9.

Dendreon, a Seattle-based biotechnology company that focuses on novel therapeutics to enhance cancer treatment options, filed for bankruptcy on Nov. 10. The Chapter 11 case number is 14-12515.

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