Medly names Walgreen winning bidder for assets following auction

By Sarah Lizee

Olympia, Wash., Feb. 6 – Medly Health Inc. named Walgreen Co. the winning bidder for some of its assets following an auction held Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The company said it would seek approval of the asset purchase agreement with Walgreen at a Tuesday hearing.

As previously reported, the official committee of unsecured creditors asked the court to compel Medly to qualify Walgreen’s bid, as well as a bid from CVS Pharmacy Inc.

The company had entered into an $18.5 million stalking horse bid from an affiliate of prepetition and debtor-in-possession lender TriplePoint Venture Growth BDC Corp. for its Pharmaca business line.

Both Walgreen and CVS’ bids differ from the stalking horse bid and from each other in terms of purchase price, the type of assets to be purchased and the assumed liabilities.

Specifically, the bid submitted by Walgreen anticipates that the debtors will receive a purchase price of $20.4 million. The bid submitted by CVS contemplated $17.6 million. Both bids excluded some assets, which would be reserved for the debtors’ estates and made available to other buyers.

Additional offers on partial assets have been received by other entities.

The Boulder, Colo.-based pharmacy company filed Chapter 11 bankruptcy on Dec. 9 under case number 22-11257.

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