M&A Advisory
K&L Gates
Full Credential Description
K&L Gates successfully represented the Italian pharmaceutical company Chiesi Farmaceutici in a unique case involving a canceled Delaware Chapter 11 auction for PhaseBio Pharmaceuticals. Chiesi was initially selected as a "bidder-to-beat" for the auction, which was later called off. The firm argued that Chiesi was entitled to a $2 million breakup fee due to the benefits their proposal provided to the estate. Chief Bankruptcy Judge Silverstein ruled in favor of Chiesi, stating that the breakup fee and expense reimbursement were essential components of their stalking horse asset purchase agreement. The court's decision highlighted the importance of the breakup fee in the context of the debtor's settlement with another party, which led to an alternative transaction. This case exemplified K&L Gates' ability to navigate complex restructuring and insolvency issues, leveraging their expertise in related fields such as mergers and acquisitions and distressed real estate. The successful recovery of the breakup fee not only provided Chiesi with a significant financial benefit but also underscored the firm's persuasive legal presentation in a challenging legal environment.
Measurable Results
Successfully completed $2M transaction