(RTTNews) - Biora Therapeutics has reached an agreement with certain of its prepetition creditors to provide financing to support a chapter 11 sale process. The company has filed a voluntary petition under chapter 11 of the U.S. Bankruptcy Code in the District of Delaware.
The Lenders have agreed to provide the company with a debtor in possession financing facility of up to $10.25 million. This funding is expected to allow Biora to meet its obligations arising during the chapter 11 case to vendors, suppliers, employees and other stakeholders as it pursues a court-supervised sale process.
Biora intends to file a motion requesting approval of a marketing and sale process. The Bid Procedures Motion will facilitate a competitive bidding process under section 363 of the Bankruptcy Code. The Lenders have agreed to serve as a stalking horse bidder for the companys assets.
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