Melinta Therapeutics cancels auction, plans to sell assets to lenders

By Caroline Salls

Pittsburgh, March 3 – Melinta Therapeutics, Inc. cancelled the March 6 auction for substantially all of its assets, according to a notice filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Since no other bids were submitted by the March 2 bid deadline, Melinta said it will ask the court to approve a sale to the stalking horse bidder, its supporting lenders.

As previously reported, Melinta filed bankruptcy to implement a restructuring support agreement reached with lenders Deerfield Private Design Fund III, LP and Deerfield Private Design Fund IV, LP.

Under the restructuring agreement, the supporting lenders will acquire the company as a going concern by exchanging $140 million of secured claims arising under its senior credit facility for 100% of the equity to be issued by reorganized Melinta under a pre-negotiated Chapter 11 plan of reorganization.

The restructuring support agreement/sale hearing is scheduled to begin on March 13.

Melinta is an antibiotics company based in New Haven, Conn. The company filed bankruptcy on Dec. 27 under Chapter 11 case number 19-12748.

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