The assets of Triplet Therapeutics, a portfolio company of Atlas Venture and MPM Capital, have been acquired in an ABC sale process
ABOUT THE COMPANY:
Triplet Therapeutics, a Boston-based biotechnology startup company, was formed to reimagine and develop treatment options for repeat expansion disorders such as Huntington’s disease. Founded in 2018, Triplet raised over $80 million from life sciences-focused venture capital investors and a premier venture debt provider.
SITUATION:
Some of Triplet’s test results were promising while others revealed a concerning level of toxicity. Facing limited appetite among its investors to continue funding the company, management initiated strategic conversations with a few large pharmaceutical players. But runway was short and bandwidth limited, compromising the opportunity to run a full process. Meanwhile the Company’s venture lender favored the involvement of a professional firm with a track record of managing challenging situations and maximizing creditor recovery. Without that steward in place to guide the process and negotiate with the potential buyers, a deal was unlikely to be achieved.
ENGAGEMENT:
The Company engaged G2 to serve as assignee in an assignment for the benefit of creditors (“ABC”). This out-of-court insolvency proceeding, which is governed by state statute, is a faster and cheaper alternative to bankruptcy. Upon launching the ABC, the Company’s board and management resigned, with select staff assisting in the ABC effort on a contract basis. As Assignee, G2 launched a process to sell substantially all of the assets including test results, technical documents, patents and other intellectual property.
OUTCOME:
As assignee G2 managed the wind down of corporate operations and put on its investment banker hat during a vigorous marketing effort to find an acquirer of substantially all of the assets. A global biopharmaceutical company emerged as the leading contender in the competitive bidding process. After the Assignee negotiated a significant increase from the initial bid the parties executed an asset purchase agreement. The proceeds provided a meaningful recovery to the secured creditor.
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