It's DOOMSDAY folks! All bids are in. Sadly, none broke the $1000 barrier, so it looks like PROVENGE and Dendreon are off to the scrap heap, where only the corporate "elite" will get their bonuses paid from it!
Yep we are doomed, doomed, and here is to a wonderful 2015............this company sucks, lying bastards......................I hate them all!!!!! MF
It's just about close-of-business on the east coast (site of Bankruptcy Court in Wilmington DE). Will there be no public announcement if there is a stalking horse bidder?
Don't understand this lack of transparency either. More of the same bullshit. Maybe no stalking horse bid is no news and if there was a stalking horse bid that would be news?
Auction scheduled for 2/3/15...Sale Hearing is 2/5/15 Today's DNDNQ SEC filing... The Debtors had until December 29, 2014 to select a Qualified Bid of a Qualified Bidder (each as defined in the Bidding Procedures) to be a stalking horse bid and finalize a purchase agreement with such stalking horse bidder. The Debtors have determined not to select a stalking horse bid. The Debtors have had active participation in the Competitive Process by a number of bidders and look forward to holding an Auction in connection with a Sale Transaction. In accordance with the Bidding Procedures, the Debtors will file a Notice of Filing of Proposed Acquisition Agreement with the Bankruptcy Court on December 30, 2014 and (ii) through PACER on the Bankruptcy Court's website, and on file with the Clerk of the Bankruptcy Court, Third Floor, 824 Market Street, Wilmington, Delaware 19801. Pursuant to the Bidding Procedures, each bid for the Debtors' non-cash assets must be based upon the acquisition agreement attached to such notice. Pursuant to the Bidding Procedures Order, Qualified Bids must be received in writing on or before January 27, 2015 at 5:00 p.m. (prevailing Eastern Time) or such earlier date as may be agreed to in accordance with terms of the Bidding Procedures. The Auction is scheduled for February 3, 2015, and the Sale Hearing is scheduled for February 5, 2015.
sfgate.com article tonight: "In a brief filing Tuesday with the Securities and Exchange Commission, the Seattle biotechnology company did not explain whether no qualified party has made such an offer or whether the company simply chose not to select one." Based on conventional Chap 11 proceedings, there is almost always a financially beneficial reason to select an early stalking horse bidder. Sounds like we're fucked. Lack of transparency mostly likely means no bidders.
Yes, but only by note holders with a substantial position because: A. It requires no further outlay of cash so it costs them nothing to bid, and B. It provides them a better recovery than any other alternative. I would not expect a serious bidder from a pharmaceutical company with a strategic motive.
That is why I expect a bid from Deerfield Investments, who holds the largest share of the bonds. In bankruptcy you can "bid" the amount you are owed so the notes are the same as cash. A 100% credit bidder is throwing already bad money and no good money. If Deerfield doesn't "credit bid" at the auction, they get their fair share of whatever the assets sell for. In a liquidation scenario that might not be very much in dollar terms, and they would stand to get about 35-40% of what is recovered. If they credit bid and win, they would own the assets and could immediately liquidate them and keep 100% of the recovery (basically sticking to the other unsecured creditors). Either way they will lose money on their investment but in a liquidation having 100% of a small amount is better than having 35-40% of a small amount. There is probably no game where anybody wins, but there is a game where some players lose less than others.
9 days 'till Deerfield officially takes over, shuts her down, and parts her out...Where is the plywood, anyway?
Don't be silly about the plywood. My brother-in-law is a lumber broker and with the continued sluggishness in home building he assures me that he can get you call the wood you need. The question is whether Deerfield steps up and makes a bid or not. Since there was no stalking horse named, either Deerfield made no bid at all or the terms of the contract were so onerous that the company decided to roll the dice without one. The only thing worse than Deerfield stripping the company for parts would be a committee of bickering creditors doing so. I am reminded that the definition of a camel is a horse designed by a committee.
