Savient Pharmaceuticals Commences Voluntary Chapter 11 Proceeding - Quick Facts

(RTTNews) - Savient Pharmaceuticals, Inc. (SVNT) announced that it has elected to file voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

The company also filed a motion seeking authorization to pursue a sale process under Section 363 of the U.S. Bankruptcy Code.

To this end, Savient has entered into an acquisition agreement with a "stalking horse" bidder, Sloan Holdings C.V., a subsidiary of US WorldMeds, LLC, which it has submitted to the Court today, Oct. 15, 2013.

It is noted that under the proposed agreement, Sloan will acquire substantially all of the assets of Savient, including all KRYSTEXXA assets, for about $55 million. The sale agreement contemplates a Court-supervised auction process, which is designed to achieve the highest or best offer for the Company's assets.

The company said the agreement with Sloan sets the floor, or minimum acceptable bid, and is subject to Bankruptcy Court approval and certain other conditions.

The proposed bidding procedures, if approved by the Court, would require interested parties to submit binding offers to acquire the company. Such parties could include strategic and financial bidders. A final sale approval hearing is anticipated to take place shortly after the auction with the anticipated closing to occur by the end of 2013.