BRIEF—Valeritas gains court nod for sale of business to Zealand Pharma

USA-based Valeritas Holdings today announced that the US Bankruptcy Court for the District of Delaware approved the sale of substantially all of the business to Danish biotech firm Zealand Pharma.

The transaction is expected to be completed during the first week of April, subject to the satisfaction of applicable closing conditions.

Zealand submitted the previously announced stalking horse bid on February 9, 2020.

Under the terms of the executed asset purchase agreement filed with the Court, the total consideration includes $23 million of cash and the assumption of certain liabilities related to the ongoing business.

In addition, the Court today approved a global settlement among the company, its prepetition lenders, and the Official Committee of Unsecured Creditors that will facilitate a consensual exit from Chapter 11 and provide a pathway for a possible recovery for the company's unsecured creditors.