BioAmber Inc fka BIOAQ

[BearcatJohnnie]

That’s very interesting. It could surely be that too. I was thinking that was more for a company looking to sell assets and not continue operating but I may have misinterpreted and that could also be bidding for a buyout. Stalking horse bidding seems more likely to me originally because the company wants to be bought, not just selling assets for cash for creditors. Here is some more info on the ccaa and bidding process with outcome info:

Asset sales under the CCAA. In the normal course of business, the sale by a Canadian corporation of all, or substantially all, of its assets requires the approval of the firm’s shareholders and may require other filings and approvals. The CCAA can facilitate or eliminate such approvals. Under the CCAA, the court has the authority to approve the sale of assets, pursuant to a vesting order, free and clear of any security, charge or other restriction and without a shareholder or even a creditor vote. The effect of the vesting order is that creditor claims to the purchased assets are converted into claims to the proceeds of sale, with the same pre-vesting order priorities. A CCAA order can also remove the need to obtain certain consents and other requirements for closing the transaction. For example, the CCAA authorises the court to assign contracts to an assignee, notwithstanding contractual restrictions on assignment, if certain preconditions are met. In addition, certain regulatory requirements under securities and other legislation can be avoided or ameliorated through the vesting order.

Stalking horse bids. The CCAA regime is flexible enough to allow for ‘stalking horse bids’. This approach is well-known in the US, but is relatively new in Canada. In this process, the debtor company enters into an agreement with a ‘stalking horse’ bidder for the sale of particular assets or the entire distressed business. An auction process is then undertaken to obtain the best offer possible. The stalking horse bidder provides a price that underpins the auction process. The stalking horse bidder enters the process knowing it may be outbid and thus negotiates compensation for its transaction costs, usually in the form of a break fee that it will receive if it loses. The stalking horse bidder resembles the ‘white knight’ in a takeover situation.

Share sales under the CCAA. An alternative to the sale of the debtor’s assets is a plan of arrangement involving the issuance of new shares of the company to the investor, with outstanding shares being diluted or extinguished. The cash, debt or equity securities contributed by the investor can then be distributed to the debtor company’s creditors pursuant to the plan of arrangement. Approval from the debtor company’s shareholders is not required, merely approval from the creditors – unless the court orders otherwise.

Debtor in Possession Financing (DIP). DIP financing is the provision of new financing to a debtor company seeking to restructure or sell its assets in the context of CCAA protection. The CCAA expressly allows the debtor company to apply for an order to permit a lender to lend new money during a restructuring, typically secured by a court-ordered charge that ranks ahead of existing secured creditors. DIP lending may be attractive to an investor as it provides access to opportunities that might not otherwise be available. If the lender is interested in ultimately acquiring the debtor’s business, providing DIP financing can give the lender a significant role in the course of the restructuring proceedings, through covenants in the DIP financing documents. This may be a critical advantage in positioning an investor for an acquisition. DIP financing can also be profitable by virtue of the attractive spread, with the risk moderated by a first-ranking security charge.

https://www.financierworldwide.com/mergers-acquisitions-in-a-more-uncertain-world-using-the-companies-creditors-arrangement-act/#.Wzw32xgpCaM