BioXcel Therapeutics, Inc. and its affiliated companies have initiated a Chapter 11 bankruptcy proceeding in the United States Bankruptcy Court for the District of Delaware, seeking court approval to sell substantially all of their assets. The sale process is being conducted under supervision of Judge Thomas M. Horan and follows a motion filed by the debtors earlier this year.
On September 28, 2026, the court approved bidding procedures that set the framework for the asset sale, including the timeline for submission of bids, an auction event, and related hearings. The auction is scheduled for October 14, 2026, with a subsequent sale hearing planned for October 21, 2026, both to be held at the Delaware courthouse or possibly conducted virtually.
The debtors have entered into a stalking horse agreement dated August 27, 2026, which establishes an initial bid for the assets. This bid includes an upfront payment of $57.5 million in cash, along with potential milestone payments of up to $67.5 million contingent on specified achievements detailed in the agreement. The stalking horse bid serves as a baseline against which other offers will be measured, allowing competing bidders to submit higher or more favorable proposals.
Interested parties must submit qualified bids by October 9, 2026, to the debtors’ investment bankers at MTS Health Partners. If no competing bids are received, the stalking horse bid may be approved without an auction. However, if multiple qualified bids are submitted, an auction will take place to determine the highest or best offer for the assets. Following the auction, the court will formally review and approve the winning bid during the sale hearing.
The sale process also involves the assumption and assignment of executory contracts and unexpired leases related to the assets. The debtors have established specific procedures to notify relevant counterparties and address cure amounts necessary to rectify any defaults under these contracts.
Objections to the sale, including challenges to the transfer of assets free and clear of liens or concerns about the adequacy of assurance from the stalking horse or other bidders, must be filed by October 14 for initial objections and by a later deadline for objections related to the conduct of the auction or the successful bidder. Failure to file timely objections may result in waiving the right to challenge the sale.
The debtors reserve flexibility to modify bidding procedures, extend deadlines, and adjust auction protocols to attract additional bids or address circumstances arising during the process. Such changes generally require consultation with the stalking horse bidder, which retains certain protections under the sale agreement.
Detailed documents regarding the sale procedures and the stalking horse agreement are publicly available on the debtors’ claims agent website. The sale marks a significant step in BioXcel Therapeutics’ efforts to restructure and maximize value for creditors amid ongoing financial challenges.