We advised an ad hoc group of noteholders in connection with Tricida’s chapter 11 proceedings

Davis Polk advised an ad hoc group of convertible senior noteholders and the indenture trustee in connection with the chapter 11 liquidation of Tricida, Inc. On January 11, 2023, Tricida filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. Shortly before filing, the members of the ad hoc noteholder group executed a restructuring support agreement with Tricida, which, among other things, contemplated the liquidation of the debtor pursuant to a confirmed chapter 11 plan and the establishment of a liquidating trust.

In February 2023, the Bankruptcy Court approved and Tricida closed on the sale of substantially all of its assets pursuant to section 363 of the Bankruptcy Code, including the sale of its chronic kidney disease drug intellectual property to Renibus Therapeutics Inc. for (i) an initial $250,000 cash consideration due upon closing, (ii) a one-time $2.5 million payment due upon certain approvals by the FDA in connection with veverimer and (iii) several additional milestone payments, up to an additional $150 million in the aggregate, upon the occurrence of certain predetermined sales thresholds. On May 23, 2023, the United States Bankruptcy Court for the District of Delaware approved Tricida’s chapter 11 plan of liquidation and the plan effective date was June 12, 2023.

Founded in 2013, Tricida was a clinical-stage pharmaceutical company focused on the development and commercialization of veverimer, a drug designed to slow the progression of chronic kidney disease through the treatment of chronic metabolic acidosis.

The Davis Polk restructuring team included partner Darren S. Klein and associates Abraham Bane and Ben Weissler. Partner Lucy W. Farr, counsel Leslie J. Altus and associates Benjamin Helfgott and Michelle Zhao provided tax advice. All members of the Davis Polk team are located in the New York office.