| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers L > Headlines for Lucira Health Inc. > News item |
Lucira’s auction process was ‘tainted and unfair,’ Pearsanta says
By Sarah Lizee
Olympia, Wash., April 11 – Lucira Health, Inc.’s choice of winning bidder for its assets drew an objection from Pearsanta, Inc., according to documents filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.
Pearsanta said the auction process, which took place on April 6, was “tainted and unfair.”
As previously reported, Lucira named Pfizer Inc. the winning bidder for its assets following the auction. Pearsanta was named the backup bidder.
Pearsanta said that even though its bid was higher, the debtor and official committee of unsecured creditors jointly selected the Pfizer bid, citing a perceived superior ability to close.
“The justification for the selection of the Pfizer bid – its ability to close – belies a valid exercise of either business judgment or good faith,” Pearsanta said in its objection.
“By accepting Pfizer’s bid, the debtor has left money on the table without any justification for doing so.”
Pearsanta said that by participating in the auction, Pfizer had agreed to accept a backup bidder position if its bid proved unsuccessful. In that case, the debtor could have inked a deal with Pearsanta on better terms, and then, if the deal hadn’t worked out due to the inability to close, it could have gotten the exact same deal it has now, Pearsanta said.
Pearsanta also said that it was subject to additional capital demands that weren’t made to Pfizer.
A sale hearing will take place on April 13. The company is hoping to close the sale by April 20.
Lucira is a medical technology company based in Emeryville, Calif. The company filed bankruptcy on Feb. 22 under Chapter 11 case number 23-10242.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.