Valeritas Holdings, Inc. filed an asset purchase agreement in the US Bankruptcy Court for the sale of substantially all its assets on February 14, 2020. As per the agreement dated February 9, 2020, seeks the Court’s approval for the sale of substantially all its assets to Zealand Pharma A/S, the stalking horse bidder, for a purchase price of $23 million in cash and assumed liabilities. Under the terms of the asset purchase agreement, the buyer shall make an earnest money deposit of $2.3 million upon the execution of the agreement. The stalking horse bidder would be entitled to a break-up fee of 3% of purchase price i.e. $0.69 million and expense reimbursement of $1 million in case of termination of the asset purchase agreement. The proceeds from the sale would be used to, satisfy the DIP loans, be used in accordance with the terms of a settlement with the debtors prepetition secured lenders, to pay any sale or transaction fee payable to the debtors professionals as a result of the sale, be used to pay the bid protections, if applicable; and otherwise be paid over to the debtors for distribution in accordance with the priorities set forth in the bankruptcy code.