Dendreon wins support of asset sale procedures, stalking horse terms

By Kali Hays

New York, Dec. 17 – Dendreon Corp. received approval of bid procedures for the sale of substantially all company assets under a Wednesday order from the U.S. Bankruptcy Court for the District of Delaware.

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 5 p.m. ET on Jan. 27, and if two or more qualified bids are received, an auction will be held on Feb. 3.

The sale hearing will be held Feb. 5.

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

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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