Codiak BioSciences to Pursue Asset Sale through Voluntary Chapter 11 Process
CAMBRIDGE, Mass., March 27, 2023 (GLOBE NEWSWIRE) -- Codiak BioSciences, Inc. (NASDAQ: CDAK), a clinical-stage biopharmaceutical company pioneering the development of exosome-based therapeutics as a new class of medicines, today announced that the Company has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware and will seek to pursue a sale process for its assets which is intended to maximize the value of the Company.
The Company began a marketing process ahead of the Chapter 11 filing to determine the level of market interest and is in ongoing discussions with several parties. The Company expects to consummate a sale of the entire business or its core assets as soon as reasonably practicable.
“The Board and management team have thoroughly assessed all of our strategic options and believe that this structured process represents the best possible solution for Codiak, taking into account our financial needs and the stage of our clinical and research programs,” said Douglas E. Williams, Ph.D., President and Chief Executive Officer of Codiak.
In connection with the filing, Codiak has appointed Paul Huygens, Principal at Province, LLC, as Chief Restructuring Officer. Mr. Huygens will oversee the business and its restructuring process, working to execute the Company's business strategy and conduct a value-maximizing sale process. Mr. Huygens brings deep experience in managing complex financial and operational restructurings, including providing interim management services to preserve and maximize value.
The Company’s executive management team, including Dr. Williams, Linda C. Bain (Chief Financial Officer and Treasurer), David Mauro, M.D., Ph.D. (Chief Medical Officer), Sriram Sathyanarayana, Ph.D. (Chief Scientific Officer), and Nicole Barna (Senior Vice President, Human Resources), will be departing the Company effective April 7; Dr. Williams will remain on the Board. Yalonda Howze (Executive Vice President, Chief Legal and Compliance Officer and Corporate Secretary) will be departing the Company on April 4. Konstantin Konstantinov, Ph.D. (Chief Technology Officer) will remain with the Company.
The Company will be filing various "First-Day" motions with the Bankruptcy Court requesting customary relief that will enable the Company to transition into Chapter 11 without disruption to its ordinary course operations. Codiak expects these motions to be approved within the first few days of the case.
Codiak is represented in this matter by Young Conaway Stargatt & Taylor, LLP as legal advisors, and Province, LLC as financial advisor and provider of interim management services.
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