Alachua Government Services: Resilience CDMO's 363 Sale

Alachua Government Services, Inc., a biologics contract development and manufacturing organization (CDMO) that built a 183,000-square-foot advanced manufacturing facility for the Department of Defense and accumulated over $1.8 billion in government contracts, filed for chapter 11 bankruptcy on July 6, 2025, after its parent company National Resilience announced it would close six of its ten manufacturing plants. The Alachua, Florida-based company—formerly known as Ology Bioservices before its 2021 acquisition by the $2+ billion venture capital-backed Resilience—saw its government contracts wind down in late 2023 and was unable to replace that revenue with commercial business.

The chapter 11 case featured disputes over approximately 800 pieces of DOD-owned equipment that delayed the sale process, a $24.3 million disputed claim from the Defense Contract Management Agency, and an Official Committee of Unsecured Creditors investigation into the parent company over objections from both the debtor and National Resilience. After laying off over 80% of its workforce before filing, the company pursued a 363 sale that resulted in Strive Specialties, Inc. acquiring the company's 275,000+ square feet of biomanufacturing facilities on October 17, 2025. The case occurred as capacity expansion outpaced demand, particularly from small and emerging biopharma companies.

Debtor(s)	Alachua Government Services, Inc.
Court	U.S. Bankruptcy Court, District of Delaware
Case Number	25-11289
Judge	Hon. J. Kate Stickles
Petition Date	July 6, 2025
Estimated Assets	$10-50 million
Estimated Liabilities	$100-500 million
Creditors	200-999
Employees	<50 (80%+ laid off before filing)
DIP Facility	lender: JMB Capital Partners Lending, LLC
Buyer	Strive Specialties, Inc.
Backup Bidder	ZZ Research LLC
Sale Approval	October 17, 2025

From Nanotherapeutics to National Resilience

Origins and nanoparticle research. The company's corporate predecessor was founded in 1999 as Nanotherapeutics, Inc., a firm focused on researching nanometer-scale particle technology to develop new drug delivery systems and enhance the efficacy of existing pharmaceuticals. For over a decade, the company operated as a research-focused enterprise focused on drug delivery technologies.

The DOD contract and pivot to CDMO. The company's focus shifted in 2013 when the Department of Defense awarded a greenfield contract to establish a Medical Countermeasures Advanced Development and Manufacturing (MCM ADM) facility. The 10-year contract, valued at over $400 million, called for construction of a 183,000-square-foot BSL-3 single-use biomanufacturing facility in Alachua, Florida. This contract led to the company's shift from a product development company to a biologics contract development and manufacturing organization (CDMO) specializing in vaccines, monoclonal antibodies, recombinant proteins, and nucleic acids.

The ADM Facility opened in October 2017 as an advanced development, testing, and manufacturing facility. The campus included infrastructure for government and commercial clients requiring GMP-certified biomanufacturing capabilities. The company's growth was fueled through grants and contracts from the National Institutes of Health, Department of Defense, National Cancer Institute, and the Biomedical Advanced Research and Development Authority (BARDA).

COVID-19 contract and government work. In February 2020, as the COVID-19 pandemic emerged, the company secured a U.S. government contract to develop an advanced monoclonal antibody therapy against the virus. This contract represented one of several partnerships through which the company worked with the federal government to develop and produce drugs, vaccines, and treatments deemed essential to national health and security. By this point, the company had accumulated more than $1.8 billion in government contracts.

National Resilience acquisition. In April 2021, Ology Bioservices was acquired by National Resilience, Inc., a new entrant in the CDMO space. The acquisition provided Resilience with approximately 300 skilled employees and over 200,000 square feet of manufacturing, office, process development, quality assurance, and quality control space across facilities in Florida, California, and Maryland.

National Resilience had launched in November 2020 with an $800 million investment from Arch Venture Partners, conceived by the firm's co-founder Robert Nelsen with the goal of building the "world's most advanced biopharmaceutical manufacturing ecosystem." By the end of 2021, Resilience had drawn additional investment rounds of $625 million and $600 million, bringing its total capital raised to over $2 billion in venture capital. The company pursued an acquisition strategy that expanded its manufacturing footprint across multiple sites.

Following the acquisition, the Alachua operation—now operating as Alachua Government Services, Inc.—continued to serve government clients while expanding its capabilities. The company constructed Building G, an additional 92,000-square-foot drug substance and drug product manufacturing facility featuring single-use technology and a BSL-2 environment. The campus also housed a 43,000-square-foot Process and Analytical Development Lab for biologics development and manufacturing.

The Path to Financial Distress

Government Contract Wind-Down.

The company's financial difficulties emerged in late 2023, when demand for the company's services began to lag. As described in the First Day Declaration, government contracts that had sustained the business for years began to wind down or were scaled back. The company sought alternative revenue through commercial programs, but demand did not replace the lost government work.

With no funded debt other than affiliate claims from its parent and a $5.8 million secured loan from Resilience US, LLC, the company depended on intercompany transactions with its non-debtor affiliates for continued operations. As revenue uncertainty grew, the parent company became unwilling to continue funding the debtor's operations indefinitely.

Resilience Capacity Reduction.

The Alachua operation's distress coincided with changes at the parent company level. National Resilience had expanded capacity faster than industry demand could support. On June 9, 2025, Resilience announced it would close six of its ten manufacturing facilities, continuing operations at only four sites: Toronto, Philadelphia, Research Triangle Park (North Carolina), and Cincinnati. The company added $250 million in bridge financing to support its restructuring efforts.

Prior to the broader announcement, Resilience had already plotted 105 layoffs at the Florida plant it acquired in 2021.

Liquidity Constraints and Workforce Reductions.

By early 2025, the company was taking steps to reduce overhead. Approximately 125 employees were laid off between January and April 2025, and the ADM Facility was idled as the company shifted toward a wind-down.

In the weeks before the bankruptcy filing, the company implemented additional reductions in force on June 20, 2025, and July 1, 2025, affecting approximately 67 employees—representing more than 80% of the remaining workforce. Only a core group of approximately 13 full-time employees and 3 temporary employees remained, focused primarily on managing and winding down minimal business operations.

On June 28, 2025, Janet R. Naifeh of FTI Consulting was appointed as Chief Restructuring Officer. Two days later, on June 30, 2025, David J. Mack was appointed as the Independent Director to oversee the wind-down and chapter 11 case. These appointments preceded the July 6, 2025 bankruptcy filing.

Prepetition Sale Process.

In February 2025, the company engaged Jefferies LLC to explore strategic alternatives, including potential sales of the operating business and the Alachua Site. Jefferies contacted no fewer than 75 parties, including biopharmaceutical companies and real estate investors. The company did not consummate a going-concern sale prior to the petition date.

In late May 2025, the company began exploring monetization alternatives for its Royalty Assets—revenue derived from cell lines used by third parties in vaccine development. The company considered both pre-petition financing secured by the Royalty Assets and an outright sale. However, due to funding and liquidity constraints, neither option could be executed before the bankruptcy filing became necessary.

A factor hampering the sale process was uncertainty surrounding approximately 800 pieces of equipment owned by the Department of Defense and other governmental agencies located at the Alachua Site. This equipment ownership question prevented potential buyers from committing as stalking horse bidders, leaving the company without a lead bidder when it entered bankruptcy.

363 Sale to Strive Specialties

Postpetition Marketing and Bidding Procedures.

Following the July 6, 2025 petition date, Jefferies continued marketing the debtor's assets. The investment banker conducted 16 introductory calls with potential buyers and secured non-disclosure agreements from 24 parties. By the July 29, 2025 stalking horse bid deadline, the company had received four indications of interest.

On September 12, 2025, the debtor filed its Sale Motion seeking court approval of bidding procedures for the Alachua Site and related assets. The motion was supplemented on September 18, 2025 with additional information. On September 30, 2025, the court entered the Bidding Procedures Order, setting the framework for the competitive auction process.

The Alachua Facilities.

The sale encompassed the company's owned real property in Alachua, Florida—a combined 275,000+ square feet of biomanufacturing facilities.

The debtor had already shed its leased sites. The Alameda, California location—which had served as a research and development laboratory—was vacated by May 2025 after all active laboratory work concluded. The Frederick, Maryland site, which had supported government-focused business operations and regulatory work for private sector customers, was similarly wound down. Both leases were rejected effective as of the petition date.

Sale Approval.

On October 17, 2025, the court entered the Sale Order approving the sale to Strive Specialties, Inc. (or its designee) as the winning bidder following a competitive auction. ZZ Research LLC was designated as the backup bidder. The sale transferred the real and personal property at the Alachua Site, including the ADM Facility and Building G, to the buyer.

The timeline from petition to sale approval was just over 100 days. As noted in the sale motion, the debtor lacked liquidity to support maintenance of the Alachua Site beyond October 15, 2025.

Separate Royalty Asset Sale.

Concurrent with the real property sale, the debtor pursued a separate sale process for its Royalty Assets. On November 21, 2025, the debtor filed a Royalty Asset Sale Motion seeking approval of bidding procedures for the royalty stream derived from cell lines used by third parties in vaccine development. The Bid Procedures Order for the Royalty Assets was entered on December 5, 2025.

The debtor also held intellectual property, including approximately 328 pending or registered patents covering GMP-certified biomanufacturing infrastructure, drug delivery technologies, and related tradenames. The disposition of these assets formed part of the broader liquidation strategy.

DIP Financing

Third-party financing structure. The debtor obtained DIP financing from an independent third party rather than its parent company. JMB Capital Partners Lending, LLC provided the facility to fund operations, maintain the facilities, and conduct the sale process. The parent company did not provide the DIP facility.

At the time of filing, the debtor held only approximately $2.3 million in cash and cash equivalents. The DIP Facility funded the chapter 11 case, wind-down, and sale process.

The terms of the DIP Facility were negotiated at arm's length with all relevant parties represented by separate counsel. The DIP Lender indicated that the facility terms represented the only basis on which it would provide financing, and the debtor's CRO stated the negotiated terms were reasonable under the circumstances.

On December 22, 2025, the court entered an order approving an amendment to the DIP Facility, extending the financing arrangement to support the ongoing administration of the case and completion of the asset sale processes.

Contested Matters

DOD Equipment Dispute.

One issue in the sale process involved approximately 800 pieces of equipment owned by the Department of Defense and other governmental agencies located at the Alachua Site. This equipment ownership uncertainty delayed the sale process and prevented the debtor from securing a stalking horse bidder prior to filing.

On September 12, 2025—the same day the Sale Motion was filed—the debtor filed a Motion to Compel the U.S. Government and third parties to remove their equipment from the Alachua Site. The motion sought to clear title issues that were impeding the sale. On September 30, 2025, the debtor and the Department of Defense reached a stipulation regarding equipment removal. The court approved this stipulation on October 10, 2025, allowing the sale to proceed.

Both prior to and following the petition date, the debtor contacted counterparties regarding the return of their equipment, working to develop plans for customers and contract counterparties to retrieve property located at the Alachua Site.

DCMA Adversary Proceeding.

The Defense Contract Management Agency (DCMA), a division of the Department of Defense, alleged an aggregate claim against the debtor of approximately $24.3 million plus interest. The disputed claim arose from cost reimbursement contracts under which the debtor was reimbursed for costs incurred, subject to later DOD audit.

After DOD auditors completed a series of annual audits spanning fiscal years 2014 through 2018, the DCMA filed claims for overpayment based principally on costs it contended were unallowable under the Federal Acquisition Regulation. The debtor had filed timely appeals challenging the government's overpayment claims to the Armed Services Board of Contract Appeals prior to the bankruptcy.

The debtor filed an adversary proceeding on September 30, 2025. The debtor sought a preliminary injunction against the DCMA, supported by a declaration from CRO Janet R. Naifeh. The U.S. Government responded by seeking a stay of the adversary proceeding, which the debtor opposed. On October 23, 2025, the parties entered a stipulation tolling deadlines while the dispute continued to be negotiated.

UCC Investigation into National Resilience.

The Official Committee of Unsecured Creditors, appointed on July 23, 2025, pursued an investigation focused on the debtor's parent company. On September 29, 2025, the committee filed a motion seeking Rule 2004 examination authority to investigate National Resilience.

Both the debtor and National Resilience objected to the 2004 motion. The parent company, represented by Kirkland & Ellis LLP, filed its objection on October 10, 2025, the same day the debtor filed its own objection. Despite these objections, the court authorized the 2004 discovery on October 16, 2025, permitting the committee to examine the parent company's transactions and decisions related to the debtor.

The committee cited $113 million in affiliate claims on the debtor's books and the parent company having raised over $2 billion in venture capital in support of its request to examine the parent company's transactions and decisions related to the debtor.

UCC Objection to Sale.

The committee also objected to the sale process itself. On September 25, 2025, the committee filed an objection to the designation and sale procedures proposed by the debtor. The objection sought modifications to the sale procedures and protections for unsecured creditors.

Industry Context: The CDMO Overcapacity Challenge

Market Dynamics.

The Alachua Government Services bankruptcy occurred during shifts in the biologics CDMO industry. According to industry analysts, the biologics CDMO market is forecast to increase by $16.32 billion at a 13.7% compound annual growth rate between 2024 and 2029. Mammalian systems held 62.32% of market share in 2024, while fill-finish and packaging services led with 35.32% market share.

Despite this growth trajectory, CDMOs have experienced a decline in demand particularly from small and emerging biopharma companies, especially for initial phases of drug development. Late 2023 and 2024 saw a rise in M&A transactions as the industry consolidated. Venture capital funding in biopharma rebounded in 2024 with over 20% year-over-year growth.

The biopharmaceutical contract manufacturing market was valued at approximately $22.40 billion in 2025, with projected growth at an 8.8% CAGR during the forecast period. Demand for large-scale microbial manufacturing was outstripping CDMO market capacity.

Resilience Restructuring.

National Resilience expanded capacity and later reduced its footprint. The company launched with the goal of becoming the "world's most advanced biopharmaceutical manufacturing ecosystem," backed by venture capital commitments. The acquisition strategy that brought Ology Bioservices into the Resilience fold was part of an effort to scale manufacturing capabilities.

Resilience acknowledged that its capacity expansion had outpaced industry demand. The June 2025 announcement that the company would close 6 of 10 facilities marked a reduction in its manufacturing footprint. The company said it added $250 million in bridge financing to support its restructuring.

The debtor depended on intercompany transactions with Resilience for liquidity. When the parent consolidated operations at other sites, the Alachua operation lost its funding support, preceding the chapter 11 filing.

Professional Retentions and Case Administration

Debtor Professionals.

Committee Professionals.

Other Party Professionals.

First interim fee applications were filed on November 14, 2025 by multiple professionals, including Richards, Layton & Finger, Goodwin Procter, Jefferies, M3 Advisory Partners, and Ashby & Geddes.

Shared Services Agreement.

While the debtor operated largely autonomously following its acquisition, certain services continued to be provided by the parent company and its affiliates. Prior to the petition date, the debtor and the Service Provider entered into a shared services agreement to ensure continued access to allocated expenses and services during the chapter 11 case.

The agreement covered corporate accounting, tax, and finance services; insurance and insurance services; information technology services and system access; and human resources and employee benefits. The projected monthly service fees totaled approximately $650,000 for July 2025, $530,000 for August 2025, and $320,000 per month for September 2025 and thereafter.

The CRO stated the service fees were reasonable given the scope of services provided and that comparable services were not available at a similar cost in the marketplace.

Key Timeline

Frequently Asked Questions

What is Alachua Government Services and why did it file for bankruptcy?

Alachua Government Services is a biologics contract development and manufacturing organization (CDMO) that specialized in manufacturing vaccines, monoclonal antibodies, recombinant proteins, and nucleic acids for the Department of Defense and other government agencies. The company filed for chapter 11 bankruptcy on July 6, 2025 after government contracts wound down in late 2023 and its parent company, National Resilience, announced it would close 6 of 10 manufacturing plants. Unable to replace government revenue with commercial business, and with the parent unwilling to continue funding operations, the company pursued a 363 sale.

What happened to National Resilience, the parent company?

National Resilience launched in November 2020 with $800 million from Arch Venture Partners and raised over $2 billion in venture capital with the goal of becoming the "world's most advanced biopharmaceutical manufacturing ecosystem." However, the company acknowledged that its capacity expansion outpaced industry demand. In June 2025, Resilience announced it would close 6 of 10 manufacturing plants and added $250 million in bridge financing to support its restructuring. The company continues to operate facilities in Toronto, Philadelphia, Research Triangle Park (NC), and Cincinnati.

What assets were sold in the bankruptcy?

The primary sale involved the debtor's real property in Alachua, Florida: the 183,000-square-foot ADM Facility (a BSL-3 capable biomanufacturing facility opened in 2017) and the 92,000-square-foot Building G (a BSL-2 drug substance and drug product manufacturing facility with single-use technology). Combined, these facilities represent 275,000+ square feet of biomanufacturing facilities. Strive Specialties, Inc. was the winning bidder after a competitive auction. The debtor's Royalty Assets—revenue from cell lines used by third parties in vaccine development—are being sold through a separate process.

What was the issue with DOD equipment?

Approximately 800 pieces of equipment owned by the Department of Defense and other governmental agencies were located at the Alachua Site. This equipment ownership uncertainty delayed the sale process and prevented the debtor from securing a stalking horse bidder prior to filing. The debtor filed a motion to compel the government to remove its equipment, and a stipulation with the DOD regarding removal was approved by the court on October 10, 2025, allowing the sale to proceed.

What is the DCMA disputed claim?

The Defense Contract Management Agency (DCMA) alleges a claim of approximately $24.3 million plus interest against the debtor related to cost reimbursement contracts. The DOD conducted audits spanning fiscal years 2014 through 2018 and subsequently claimed the debtor was overpaid for costs that were unallowable under the Federal Acquisition Regulation. The debtor disputed these claims and had filed appeals to the Armed Services Board of Contract Appeals. An adversary proceeding was filed in the bankruptcy case, with the parties entering a tolling stipulation while negotiations continue.

Why did the UCC investigate National Resilience?

The Official Committee of Unsecured Creditors sought Rule 2004 discovery to investigate the debtor's parent company, National Resilience. With $113 million in affiliate claims on the debtor's books and the parent having raised over $2 billion in venture capital, the committee sought to examine the parent company's transactions and decisions related to the debtor. Both the debtor and National Resilience objected to the investigation, but the court authorized the 2004 examination on October 16, 2025.

What government contracts did the company have?

The company accumulated over $1.8 billion in government contracts during its history. The largest was the 10-year, $400+ million DOD contract awarded in 2013 to build and operate the ADM Facility for Medical Countermeasures Advanced Development and Manufacturing. In February 2020, the company received a contract to develop advanced monoclonal antibody therapy against COVID-19. The company also worked with NIH, NCI, and BARDA on various grants and contracts.

What happened to the company's employees?

The debtor implemented workforce reductions in the months before filing. Approximately 125 employees were laid off between January and April 2025. Additional reductions on June 20 and July 1, 2025 affected approximately 67 more employees—over 80% of the remaining workforce. At the time of filing, only about 13 full-time employees and 3 temporary workers remained, focused primarily on managing the wind-down and maintaining facilities until the sale could be completed.

Who provided DIP financing?

JMB Capital Partners Lending, LLC provided third-party DIP financing in the form of a non-amortizing priming, super-priority senior secured term loan facility of up to $17 million. Norton Rose Fulbright US LLP served as counsel to the DIP Lender. The financing funded the case while the debtor had approximately $2.3 million in cash at filing and the parent company did not provide additional funding.

What is the current status of the CDMO industry?

The biologics CDMO market is projected to grow at 13.7% CAGR through 2029, but experienced a decline in demand from small and emerging biopharma companies in 2023-2024, particularly for initial phases of development. Industry analysts note that many CDMOs expanded capacity during the pandemic beyond what the market could absorb. Venture capital funding in biopharma rebounded in 2024 with 20%+ year-over-year growth, and M&A activity has increased as the industry consolidates.

Who is the claims agent for Alachua Government Services?

Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

Read more chapter 11 case research on the ElevenFlo blog.