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 to be paid as part of the debtor's settlement with another party, which led to an alternative transaction. The K&L Gates team, which included 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 exemplifies the firm's ability to navigate intricate restructuring and insolvency issues, leveraging their expertise in related fields such as mergers and acquisitions and distressed asset transactions.
Measurable Results
Successfully completed $2M transaction