23andMe Initiates Voluntary Chapter 11 Process to Maximize Stakeholder Value Through Court-Supervised Sale Process

Core Viewpoint - 23andMe Holding Co. has initiated voluntary Chapter 11 proceedings to facilitate a court-supervised sale process aimed at maximizing the value of its business while continuing normal operations during this period [2][3]. Group 1: Business Operations and Financial Support - The company expects to continue its business operations in the ordinary course during the Chapter 11 proceedings [2]. - 23andMe has secured approximately $35 million in debtor-in-possession (DIP) financing to support ongoing operations [5]. - The company intends to resolve all outstanding legal liabilities stemming from a previously disclosed cyber incident [5]. Group 2: Sale Process and Asset Management - 23andMe is seeking court authorization to sell substantially all of its assets through a Chapter 11 plan or Section 363 of the U.S. Bankruptcy Code [3]. - The company plans to actively solicit qualified bids over a 45-day process, with an auction to be conducted if multiple bids are received [3]. - Any buyer will be required to comply with applicable laws regarding the treatment of customer data [3]. Group 3: Leadership and Governance Changes - Anne Wojcicki has resigned as CEO, with Joe Selsavage appointed as Interim CEO and Matt Kvarda as Chief Restructuring Officer [8]. - Thomas Walper has been appointed as an independent director on the Board [8]. Group 4: Legal and Advisory Support - 23andMe has engaged legal counsel and restructuring advisors, including Paul, Weiss, Rifkind, Wharton & Garrison LLP and Alvarez & Marsal North America, LLC [9].