Bankruptcy will permit continued delivery of its Provenge prostate cancer treatment
Details on Dendreon bankruptcy filing
As a part of the deal, the owners of 84% of a $620 million issue of convertible senior notes have signed onto a restructuring support agreement that will convert their debt to equity in a reorganized company. The support agreement comes following extensive negotiations with Deerfield Management Company, L.P., the largest holder of the debt issue, and others, according to court filings.
Dendreon Corporation (NASDAQ:DNDN) will launch a court-supervised sale process while pursuing bankruptcy, looking for a buyer to continue producing their prostate immunotherapy. The agreement specifies that potential bidders will have to provide value of at least $275 million. Court filings also noted efforts to sell Dendreon in late 2013 produced no bidders.
Of note, the biotechnology firm filed for bankruptcy protection with $100 million in cash or cash equivalents, and will not require bankruptcy financing.