Genapsys Shareholders Denied Break-Up Fee Bidding Protection

A group of three Genapsys Inc. shareholders lost their request for a $1.3 million fee in the event their $42 million bid for the bankrupt gene sequencing company falls apart or is defeated at auction.

Farallon Capital Management LLC, Soleus Private Equity Fund II LP, and PBM GEN Holdings LLC, who together hold nearly $70 million in Genapsys’ preferred equity, have agreed to put forward a starting bid for the company’s assets consisting of $10 million in cash and $32 million of assumed debt.

While the investors can be reimbursed up to $750,000 for professional expenses tied to negotiating the ...