Vivus sets bid procedures for assets; plans to file amended plan

By Sarah Lizee

Olympia, Wash., Oct. 21 – Vivus, Inc. is seeking court approval of the bidding procedures for the sale of the debtors’ assets, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

In connection with the sale motion, the debtors are working with a supporting noteholder and its equity committee to file a second amended joint pre-packaged plan that would implement a reorganization or a sale transaction, as applicable.

The amendments made to the plan will reflect the debtors’ intent to pursue, on parallel paths, both the reorganization transaction and the sale transaction.

Vivus said that a marketing process will continue up until the bidding deadline, which is 4 p.m. ET on Dec. 23.

The baseline bid will be determined by the equity committee, the secured noteholder and the convertible noteholder.

The minimum overbid amount for all assets in the aggregate, whether in one or a combination of qualified bids, will be $1 million.

The debtors are seeking to schedule a hearing on approval of the bidding procedures on Nov. 5.

An auction, if needed, would be held on Dec. 29, and a sale hearing would be held on Jan. 12.

Campbell, Calif.-based Vivus is a pharmaceutical company that filed bankruptcy on July 7. The Chapter 11 case number is 20-11779.

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