23andMe Confirms All Potential Buyers Must Agree to Comply With Privacy Policy and Applicable Law
23andMe (Nasdaq: ME) has received approval from the U.S. Bankruptcy Court for its 'first day' motions following its voluntary Chapter 11 filing on March 23, 2025. The Court authorized the company to pay employee wages, compensate vendors, and access a $35 million debtor-in-possession financing facility from JMB Capital Partners.
The genetics company confirmed that its existing consumer privacy policies remain unchanged, and all potential buyers must agree to comply with these policies and applicable laws regarding customer data. The Court approved a 45-day bidding process for the sale of substantially all assets through Chapter 11 or Section 363 of the U.S. Bankruptcy Code.
A second hearing is scheduled for April 22 to consider additional relief, including final approval of the DIP facility. The company has retained various advisors, including Paul, Weiss, Rifkind, Wharton & Garrison LLP and Moelis & Company , to assist with the restructuring process.
23andMe (Nasdaq: ME) ha ricevuto l'approvazione dal Tribunale Fallimentare degli Stati Uniti per le sue mozioni 'primo giorno' a seguito della richiesta di Chapter 11 presentata volontariamente il 23 marzo 2025. Il Tribunale ha autorizzato l'azienda a pagare gli stipendi dei dipendenti, compensare i fornitori e accedere a un finanziamento per debitori in possesso di 35 milioni di dollari da JMB Capital Partners.
L'azienda genetica ha confermato che le sue attuali politiche sulla privacy dei consumatori rimangono invariate e tutti i potenziali acquirenti devono concordare di rispettare queste politiche e le leggi applicabili riguardanti i dati dei clienti. Il Tribunale ha approvato un processo di offerta di 45 giorni per la vendita della maggior parte degli attivi attraverso il Chapter 11 o la Sezione 363 del Codice Fallimentare degli Stati Uniti.
Un secondo incontro è programmato per il 22 aprile per considerare ulteriori misure di sollievo, inclusa l'approvazione finale del finanziamento DIP. L'azienda ha assunto vari consulenti, tra cui Paul, Weiss, Rifkind, Wharton & Garrison LLP e Moelis & Company, per assistere nel processo di ristrutturazione.
23andMe (Nasdaq: ME) ha recibido la aprobación del Tribunal de Quiebras de EE. UU. para sus mociones de 'primer día' tras su presentación voluntaria de Chapter 11 el 23 de marzo de 2025. El Tribunal autorizó a la empresa a pagar los salarios de los empleados, compensar a los proveedores y acceder a un financiamiento para deudores en posesión de 35 millones de dólares de JMB Capital Partners.
La empresa de genética confirmó que sus políticas actuales de privacidad del consumidor permanecen sin cambios, y todos los posibles compradores deben aceptar cumplir con estas políticas y las leyes aplicables sobre datos de clientes. El Tribunal aprobó un proceso de licitación de 45 días para la venta de prácticamente todos los activos a través del Chapter 11 o la Sección 363 del Código de Quiebras de EE. UU.
Se ha programado una segunda audiencia para el 22 de abril para considerar alivios adicionales, incluida la aprobación final de la instalación DIP. La empresa ha contratado a varios asesores, incluidos Paul, Weiss, Rifkind, Wharton & Garrison LLP y Moelis & Company, para ayudar con el proceso de reestructuración.
23andMe (Nasdaq: ME)는 2025년 3월 23일 자발적으로 Chapter 11을 신청한 후 미국 파산 법원으로부터 '첫날' 동의안을 승인받았습니다. 법원은 회사가 직원 급여를 지급하고 공급업체에 보상하며 JMB Capital Partners로부터 3,500만 달러의 채무자 보유 자금 조달 시설에 접근하도록 허가했습니다.
유전자 회사는 기존 소비자 개인정보 보호 정책이 변경되지 않으며, 모든 잠재적 구매자는 이러한 정책과 고객 데이터에 관한 관련 법률을 준수해야 한다고 확인했습니다. 법원은 Chapter 11 또는 미국 파산법 제363조를 통해 대부분의 자산 판매를 위한 45일 입찰 절차를 승인했습니다.
추가 구제를 고려하기 위한 두 번째 청문회가 4월 22일로 예정되어 있으며, 여기에는 DIP 시설의 최종 승인도 포함됩니다. 회사는 Paul, Weiss, Rifkind, Wharton & Garrison LLP 및 Moelis & Company를 포함한 여러 자문사를 고용하여 구조조정 프로세스를 지원하고 있습니다.
23andMe (Nasdaq: ME) a reçu l'approbation du Tribunal de faillite des États-Unis pour ses motions de 'premier jour' suite à sa demande volontaire de Chapter 11 le 23 mars 2025. Le Tribunal a autorisé l'entreprise à payer les salaires des employés, à indemniser les fournisseurs et à accéder à un financement pour débiteurs en possession de 35 millions de dollars de JMB Capital Partners.
L'entreprise de génétique a confirmé que ses politiques de confidentialité des consommateurs existantes demeurent inchangées, et tous les acheteurs potentiels doivent accepter de se conformer à ces politiques et aux lois applicables concernant les données des clients. Le Tribunal a approuvé un processus d'enchères de 45 jours pour la vente de presque tous les actifs par le biais du Chapter 11 ou de la Section 363 du Code de faillite des États-Unis.
Une deuxième audience est prévue pour le 22 avril afin d'examiner des mesures de soulagement supplémentaires, y compris l'approbation finale de l'installation DIP. L'entreprise a retenu divers conseillers, dont Paul, Weiss, Rifkind, Wharton & Garrison LLP et Moelis & Company, pour l'assister dans le processus de restructuration.
23andMe (Nasdaq: ME) hat die Genehmigung des US-Insolvenzgerichts für seine 'Erster Tag'-Anträge nach der freiwilligen Beantragung von Chapter 11 am 23. März 2025 erhalten. Das Gericht hat dem Unternehmen die Zahlung von Mitarbeitergehältern, die Kompensation von Lieferanten und den Zugang zu einem 35 Millionen Dollar-Debitorenfinanzierungsdarlehen von JMB Capital Partners genehmigt.
Das Genetikunternehmen bestätigte, dass seine bestehenden Datenschutzrichtlinien für Verbraucher unverändert bleiben und alle potenziellen Käufer zustimmen müssen, diese Richtlinien und die geltenden Gesetze zum Kundendaten zu befolgen. Das Gericht genehmigte einen 45-tägigen Bietprozess für den Verkauf nahezu aller Vermögenswerte im Rahmen von Chapter 11 oder Abschnitt 363 des US-Insolvenzgesetzes.
Eine zweite Anhörung ist für den 22. April angesetzt, um zusätzliche Erleichterungen zu prüfen, einschließlich der endgültigen Genehmigung der DIP-Finanzierung. Das Unternehmen hat verschiedene Berater engagiert, darunter Paul, Weiss, Rifkind, Wharton & Garrison LLP und Moelis & Company, um den Restrukturierungsprozess zu unterstützen.
- Secured $35M DIP financing to maintain operations
- Court approval to continue paying employees and vendors
- Maintained existing customer privacy protections
- Filing for Chapter 11 bankruptcy protection
- Forced to sell substantially all assets
- Company facing financial distress requiring restructuring
Insights
The bankruptcy filing by 23andMe represents a significant negative development for shareholders. Chapter 11 proceedings typically result in substantial or complete loss of equity value as creditors' claims take priority. The
The court approval for a 45-day asset sale process is particularly concerning, as the company is seeking to sell substantially all assets, indicating a liquidation strategy rather than a reorganization. While the company emphasizes privacy policy compliance for potential buyers, this provides little comfort to investors facing likely significant losses.
Bankruptcy proceedings of this nature typically follow extended financial difficulties, and the rapid progression from filing (March 23) to court approvals (March 26) suggests preparation for an expedited process. The involvement of multiple advisory firms (Paul Weiss, Morgan Lewis, Alvarez & Marsal, Moelis) underscores the complexity of the situation and indicates substantial restructuring costs that will further diminish any residual value for shareholders.
The bankruptcy court proceedings reveal 23andMe's strategic prioritization of customer data protection even during financial distress. Their explicit requirement that all potential buyers must agree to comply with existing privacy policies and applicable laws creates a critical guardrail in what could otherwise be a concerning situation for consumers.
The court's approval of this stipulation establishes an important precedent for handling sensitive genetic information during corporate restructuring. This approach demonstrates recognition of the unique ethical considerations surrounding genomic data, which contains deeply personal biological information that cannot be changed if compromised.
However, the bankruptcy process inevitably introduces uncertainty around long-term data governance. While current protections remain in place, the ultimate buyer's approach to monetizing this genetic database will determine future privacy implications. The 45-day bidding window and court oversight provide some safeguards, but consumers should remain vigilant about potential changes in data practices following any acquisition. The company's market positioning around genetic privacy has been central to its consumer trust, making this aspect of the bankruptcy particularly significant.
Receives Court Approval for First Day Motions to Support Ongoing Business Operations
SAN FRANCISCO, March 26, 2025 (GLOBE NEWSWIRE) -- 23andMe Holding Co. (“23andMe” or the “Company”) (Nasdaq: ME), a leading human genetics and biotechnology company, today announced that it has received approvals from the U.S. Bankruptcy Court for the Eastern District of Missouri (the “Court”) for its “first day” motions related to 23andMe’s voluntary Chapter 11 petitions filed March 23, 2025, including authorization to pay employee wages and benefits and compensate certain vendors and suppliers in the ordinary course for goods and services provided and to enter into the binding term sheet for a
23andMe remains committed to its customers while it seeks to implement an efficient Chapter 11 process that maximizes the value for all of its stakeholders. As discussed in Court today, the Company’s existing consumer privacy policies remain in place, and the Company has not changed how it manages or protects customer data through any of the motions that were approved by the Court.
The Court authorized 23andMe to commence a process to sell substantially all of its assets through a Chapter 11 plan or pursuant to Section 363 of the U.S. Bankruptcy Code and approved the bidding procedures associated with the process. To constitute a qualified bid, potential buyers must, among other requirements, agree to comply with 23andMe’s consumer privacy policy and all applicable laws with respect to the treatment of customer data.
The Company, with the assistance of Moelis, its independent investment banker, will actively solicit qualified bids over a 45-day process following the Petition Date. Any sale transaction involving the transfer of customer data will be subject to notice and oversight and approval by the Court and customary regulatory approvals.
A “second day” hearing for the Court to consider the Company’s additional requested relief, including entry of an order approving the DIP Facility to further support ongoing operations, is scheduled for April 22.
Additional information regarding 23andMe’s Chapter 11 filing, proceedings and claims process is available at https://restructuring.ra.kroll.com/23andMe. Questions about the claims process should be directed to the Company’s claims agent, Kroll, at 23andMeInfo@ra.kroll.com or by calling (888) 367-7556.
Advisors
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Morgan, Lewis & Bockius LLP are serving as legal counsel to 23andMe, and Alvarez & Marsal North America, LLC as restructuring advisor. Moelis & Company LLC is serving as investment banker and Goodwin Procter LLP is serving as legal advisor to the Special Committee of 23andMe’s Board of Directors. Reevemark and Scale are serving as communications advisors to the Company.
About 23andMe
23andMe is a genetics-led consumer healthcare and biotechnology company empowering a healthier future. For more information, please visit www.23andme.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release are forward-looking statements. The words "believes," "anticipates," "estimates," "plans," "expects," "intends," "may," "could," "should," "potential," "likely," "projects," “predicts,” "continue," "will," “schedule,” and "would" or, in each case, their negative or other variations or comparable terminology, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on 23andMe’s current expectations and projections about future events and various assumptions. 23andMe cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on 23andMe’s forward-looking statements. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of 23andMe), or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements, which could include the following: risks and uncertainties relating to the Company’s Chapter 11 case (the “Chapter 11 case”), including but not limited to, the Company’s ability to obtain bankruptcy court approval with respect to motions in the Chapter 11 case, the effects of the Chapter 11 case on the Company and on the interests of various constituents, bankruptcy court rulings in the Chapter 11 case and the outcome of the Chapter 11 case in general, the Company’s plans to pursue a structured sale of its assets pursuant to a competitive auction and sale process pursuant to a Chapter 11 plan or under Section 363 of the Bankruptcy Code, the length of time the Company will operate under the Chapter 11 case, risks associated with any third-party motions in the Chapter 11 case, the potential adverse effects of the Chapter 11 case on the Company’s liquidity or results of operations and increased legal and other professional costs necessary to execute the Company’s reorganization; whether the Company will emerge, in whole or in part, from the Chapter 11 case as a going concern, trading price and volatility of the Company’s Class A Common Stock, and the ability of the Company to remain listed on The NASDAQ Capital Market. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The statements made herein are made as of the date of this press release and, except as may be required by law, 23andMe undertakes no obligation to update them, whether as a result of new information, developments, or otherwise.
Contact Information
investors@23andme.com
press@23andme.com
FAQ
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