Clovis files to abandon leases in California

BOULDER and WILMINGTON, Delaware — Clovis Oncology Inc., (Nasdaq: CLVS) the Boulder-based drug developer that defaulted on a loan and was forced to file for protection under Chapter 11 bankruptcy, has petitioned the court to permit it to shed leases on real estate that it no longer needs for its operation.

The action, filed Wednesday in federal bankruptcy court in Delaware, asked that affected parties file objections by Jan. 4, 2023, but that the abandonment be permitted to occur as of the filing date of Dec. 28.

None of the leases involved are Colorado-based. Instead, Clovis would like to end leases in San Francisco and Oakland, California, immediately upon approval from the court, and also asks the court to permit it to abandon personal property that remains at those locations. 

The properties were used for corporate offices and research laboratories. “The debtors have determined that they will not require the use of the premises after the rejection date,” the court filing read.

The filing also said that remaining property at the locations, other than lab equipment, has little ongoing value to the company and would be more expensive to remove than to abandon.

The most recent filing asked the court to permit retroactive rejection of the leases so that it can avoid paying rent for some of December and all of January, thus saving the company about $530,000.

Source: BizWest