Dextera Surgical Inc (OTCMKTS:DXTR) a firm commercializing and developing the MicroCutter 5/80™ Stapler reported that it has submitted for Chapter 11 bankruptcy protection. At the same time, the company has entered into an asset purchase deal with Aesculap, Inc, an associate of B. Braun Group, for around $17.3 million.
Julian Nikolchev, the CEO and President of Dextera Surgical, reported that they have performed an extensive evaluation of all strategic alternatives for their business, and at this time, they consider it is in the best interest of their shareholders and stakeholders to progress with assets sale. The deal with Aesculap will work as a “stalking horse” bid in an auction of their assets. They consider this procedure will continue their objective of keeping their unique cardiac anastomosis products and surgical stapling platform in the surgeons’ hands who understand the potential of their technology and products.
The voluntary Chapter 11bankruptcy was filed in the U.S. Bankruptcy Court. Dextera reported that the sale procedure will be performed pursuant to section ‘363’ of the U.S. Bankruptcy Code and is intended to achieve the best or highest offer for company’s assets. The firm will continue to function during this bidding procedure, which is projected to be completed in 45 days to 60 days.
This deal with Aesculap establishes the minimum acceptable bid for the firm’s assets, and is contingent to Bankruptcy Court nod and certain other conditions. The projected bidding processes, if permitted by the Court, would need interested parties to file competitive binding offers to buy the firm’s assets and such parties could comprise financial and strategic bidders. Considering qualified bids are filed, then an auction would be held. Subsequently, a final sale nod hearing is expected to happen with the projected completion to finalize by early 2018. Dextera projects that considerably all of its assets will be offered pursuant to this procedure.