Seelos Therapeutics Faces Liquidation Following Court-Approved Asset Sale

A New York bankruptcy judge has authorized the sale of Seelos Therapeutics’ remaining assets for $22 million, effectively concluding the biotechnology firm’s protracted financial collapse. The September 17 ruling approved a credit bid from GLD Debt Acquisition, which had previously acquired the company’s secured debt obligations.

The asset disposal faced significant opposition from unsecured creditors’ committees, requiring additional concessions to proceed. Objections were ultimately resolved through a $100,000 cash payment plus $25,000 allocated for contractual expenses. Certain assets were excluded from the primary sale and are scheduled for separate auctions, with anticipated proceeds between $175,000 and $200,000. These amounts represent minimal recovery compared to outstanding liabilities.

Regulatory Demotion and Trading Restrictions

The company’s decline accelerated in October 2024 when Nasdaq delisted Seelos shares... Read more...