Contract Research: Auction canceled; $50 million stalking horse wins

By Jim Witters

Wilmington, Del., May 14 - Contract Research Solutions, Inc. received no additional qualified bids before its May 11 deadline and has determined that the $50 million stalking horse credit bid by its pre-bankruptcy first-lien lenders and pre-bankruptcy second-lien lenders is the successful bid, according to documents filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The company canceled the auction scheduled for May 15.

A sale hearing is scheduled for 10 a.m. ET on May 17.

As previously reported, in addition to the credit bid amount, U.S. purchaser CSRI Holdings, LLC and Canadian purchasers 0935867 B.C. Ltd. and 0935870 B.C. Ltd. have agreed to assume $30 million of the company's obligations, including $15 million of post-bankruptcy financing and a $15 million roll-up of pre-bankruptcy secured obligations.

Contract Research Solutions, also known as Cetero, is a Cary, N.C.-based contract research organization that provides testing services for name-brand pharmaceutical and generic drug companies. The company filed its Chapter 11 case on March 26 in the U.S. Bankruptcy Court for the District of Delaware. The case number is 12-11004.

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