GNC’s Bankruptcy Targets Sale To Harbin Pharma, With Reorganization Also An Option
Chapter 11 bankruptcy protection filing positions largest shareholder Harbin Pharmaceutical to acquire full ownership for $760m. But petition also gives it an option of reorganizing with $525m financing if a sale is not completed within 141 days.
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Deadline passed for “other qualified bidders to submit higher or otherwise better offers to purchase” full ownership of GNC. Approving sale to Harbin Pharmaceuticals, already its largest shareholder, depends partly on approval by US bankruptcy court, where a hearing is set for 17 September.
DynamicVetnures also contends Harbin Pharmaceutical is attempting to avoid a regulatory review by federal agencies on national security and other questions that is required when foreign companies make large investments in US businesses.
GNC had faced a springing maturity date of 16 May for payments to reduce its debt of more than $865m in convertible notes and other debts from credit facilities to less than $50m.