AtheroGenics sets bid procedures for sale of non-cash assets

By Caroline Salls

Pittsburgh, March 12 - AtheroGenics, Inc. requested court approval of the bid procedures for the proposed sale of its non-cash assets, according to a Wednesday filing with the U.S. Bankruptcy Court for the Northern District of Georgia.

The company said its primary non-cash asset is its lead antioxidant and anti-inflammatory drug candidate, known as AGI-1067.

AtheroGenics said it is in advanced talks with one potential buyer, and it expects to enter into a $2 million stalking horse agreement with that buyer.

If the stalking horse bidder is not the high bidder at auction, AtheroGenics will pay it a $200,000 break-up fee and reimburse up to $200,000 of its sale-related expenses.

Initial overbids are due by 10 a.m. ET on March 23. Those bids must be for at least $2 million, plus the amount of the bid protections and $100,000.

All bids must include a $200,000 deposit toward the purchase price.

If competing bids are received, the auction will be held March 24.

Atlanta-based AtheroGenics develops drugs for the treatment of chronic inflammatory diseases. The company agreed to have its involuntary Chapter 7 bankruptcy case converted to a Chapter 11 case on Oct. 7. The case number is 08-78200.

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