Judge Clears $6M DIP Loan To Fund Graceway Ch. 11 Sale

Law360, Wilmington (September 30, 2011, 2:58 PM EDT) -- A Delaware bankruptcy judge on Friday cleared Graceway Pharmaceuticals LLC to borrow $6 million from an affiliate and use its lenders’ cash collateral to fund the proposed sale of the company’s assets, including intellectual property rights and vendor contracts, to Galderma Pharma SA.

Hammered by generic competition to its best-selling skin drug Aldara, Graceway filed for bankruptcy protection Thursday under the weight of more than $800 million in debt.

Annual sales of Aldara, a scalp and skin lesion treatment that made up 85 percent of Graceway’s...
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