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 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 intricacies of mergers and acquisitions and related legal areas. The successful recovery of the breakup fee not only underscored the firm's legal acumen but also provided Chiesi with a substantial financial benefit in a challenging situation.
Measurable Results
Successfully completed $2M transaction