Sidley recently obtained a novel order from the United States Bankruptcy Court for the District of Delaware recognizing and enforcing an order of the Ontario Superior Court of Justice in a pending CCAA proceeding approving a reverse vesting transaction involving Acerus Pharmaceuticals Corporation. Reverse vesting transactions were only recently developed and are unique to Canadian insolvency proceedings. The order, entered by bankruptcy judge Thomas Horan, is only the second order recognizing a reverse vesting transaction ever entered by a U.S. court. The order facilitates the purchase of valuable interests in the debtors and “vesting out” of certain liabilities of the debtors into residual companies, resulting in a restructured healthy entity that exits the insolvency proceeding.
The Restructuring team representing Acerus Pharmaceuticals includes partner Bill Curtin and managing associate Michael Sabino.