Impel Pharmaceuticals Completes Asset Sale and Liquidation Process

Impel Pharmaceuticals underwent a court-supervised liquidation after filing for bankruptcy in late 2023. The process included an asset sale and the cancellation of its publicly traded shares.

The company submitted voluntary Chapter 11 petitions to the U.S. Bankruptcy Court for the Northern District of Texas on December 19, 2023. During the proceedings, Impel entered an asset purchase agreement with JN Bidco LLC, designating it as the stalking horse bidder for substantially all company assets under Section 363 of the Bankruptcy Code.

The Bankruptcy Court approved the sale of Impel’s assets to JN Bidco LLC for $17.5 million in cash, with no other bids received. The sale closed on February 12, 2024, and the court later confirmed the revised first amended liquidation plan on April 1, 2024.

The effective date of the joint plan of liquidation was established as April 5, 2024. On this date, the company’s common stock (CUSIP No. 45258K109) was cancelled, and no further trading or exchange was required by shareholders.

What the numbers show

• Impel listed approximately $126.9 million in debt in its Chapter 11 filing
• About $121.5 million of this debt was in prepetition-secured loans
• The asset sale to JN Bidco LLC was approved for $17.5 million

Impel Pharmaceuticals continued its operations during the court-supervised sale process, including maintaining patient access to its product Trudhesa and covering daily expenses. Brandon Smith of Teneo Capital LLC was appointed as Chief Restructuring Officer to oversee the restructuring efforts during this period.

The company, originally incorporated in 2008 and headquartered in Seattle, Washington, was previously known as Impel NeuroPharma, Inc. before changing its name in April 2022. The liquidation process resulted in the transition of the company’s assets and the formal end of its stock listing.

The court’s confirmation of the liquidation plan and the asset sale marked the conclusion of Impel’s bankruptcy proceedings. No competing bids were submitted for the company’s assets during the sale process.

Impel’s filing listed its outstanding debts, which included both secured loans and unsecured trade obligations. The company’s actions during the proceedings focused on maintaining business continuity until the sale and liquidation were finalized.

* This article is based on publicly available information at the time of writing.