M&A Advisory
K&L Gates
Full Credential Description
K&L Gates successfully represented the Italian pharmaceutical company Chiesi Farmaceutici in a complex case involving a canceled Delaware Chapter 11 auction for PhaseBio Pharmaceuticals. Chiesi, a family-controlled global pharmaceutical firm, was initially selected as the "bidder-to-beat" for the auction, which was ultimately called off. The key issue at hand was the entitlement to a breakup fee due to the unique circumstances surrounding the auction's cancellation. Chief Bankruptcy Judge Silverstein ruled in favor of Chiesi, determining that the company was entitled to a $2 million breakup fee. This decision was based on the significant benefits that Chiesi's proposal provided to the bankruptcy estate, with the judge noting that the fee and expense reimbursement terms were "essential" components of Chiesi's stalking horse asset purchase agreement. The breakup fee was structured to be payable in the context of the debtor's settlement with another party, which led to an alternative transaction. The case highlighted K&L Gates' expertise in restructuring and insolvency, as well as its ability to navigate the intricate legal landscape of mergers and acquisitions. The firm's team, including partners Lee Hogewood, Margaret Westbrook, and John Gardner, along with associates Emily Steele, Matthew Goeller, and Megan O’Connor, effectively presented their case, leading to a favorable outcome for Chiesi. This case not only underscored the firm's legal acumen but also demonstrated the importance of tailored legal solutions in complex bankruptcy scenarios.
Measurable Results
Successfully completed $2M transaction