Codiak BioSciences gets interim approval to access cash collateral

By Sarah Lizee

Olympia, Wash., March 30 – Codiak BioSciences, Inc. received interim court approval to access the cash collateral of prepetition secured lenders Hercules Capital, Inc. and its affiliates, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As of the petition date, the debtors owed about $25 million in principal and additional amounts in accrued interest and other costs to the lenders.

Codiak and the lenders have reached an agreement on the consensual use of cash collateral.

“Absent sufficient funds to support the debtors’ business operations, the value of the debtors’ assets will quickly erode,” the company has said in its motion seeking the cash collateral access.

A further hearing is scheduled for April 26.

Codiak BioSciences is a clinical-stage biopharmaceutical company based in Cambridge, Mass. The company filed bankruptcy on March 27 under Chapter 11 case number 23-10350.

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