Benzinga -
- Clovis Oncology Inc (NASDAQ: CLVS) has voluntarily initiated a Chapter 11 proceeding in the U.S. Bankruptcy Court and will seek to sell its assets through a court-supervised sales process.
- The Debtors have filed various "first day" motions with the Bankruptcy Court requesting customary relief that will enable them to transition into Chapter 11 without material disruption to their ordinary course operations.
- Related: Clovis Oncology Shares Nose-Dive As Potential Bankruptcy Filing Looms.
- Clovis has received a commitment of up to $75 million in a multi-draw debtor-in-possession (DIP) financing facility.
- Before the Chapter 11 filing, and subject to Bankruptcy Court approval, Clovis entered into a "stalking horse" purchase and assignment agreement with Novartis Innovative Therapies AG for FAP-2286 for an upfront payment of $50 million and up to an additional $333.75 million as development & regulatory milestones and $297 million in later sales milestones.
- Clovis is also actively engaged in discussions with several interested parties for a potential sale of one or more of its other assets.
- Price Action: CLVS shares are down 11.50% at $0.18 during the premarket session on the last check Monday.