The U.S. Bankruptcy Court approved SunEdison’s bidding procedures related to the Debtors’ sale of real property located in Sherman, TX; the times, dates, places and forms of notice for an auction and a sale hearing, a break-up fee and expense reimbursement and an interim order approving the sale and authorizing the payment of broker commissions from sale proceeds.
As previously reported, “Indeed, after a year plus process and consideration of numerous written offers to acquire the Texas Property, the Debtors accepted, subject to higher and better offers and Bankruptcy Court approval, the written offer from Corning Research & Development (the ‘Stalking Horse Purchaser’) as a ‘stalking horse offer.’ The Debtors and the Stalking Horse Purchaser have negotiated a purchase and sale agreement…providing for the sale of the Texas Property for a purchase price of $21,000,000 (the ‘Purchase Price’), subject to higher or better offers and Bankruptcy Court approval….The Stalking Horse Purchaser provided the Debtors with a $500,000 initial deposit upon execution of the Purchase Agreement (the ‘Deposit’).”
In addition, “If the Purchase Agreement has not been previously terminated due to a default by the Stalking Horse Purchaser or a Remediation Termination Event and if the Court approves the Sale of the Texas Property to a Successful Purchaser that is not the Stalking Horse Purchaser or otherwise declines to approve the Sale to the Stalking Horse Purchaser, the Purchase Agreement provides that the Stalking Horse Purchaser will be entitled to (a) the return of the Deposit, (b) a break-up fee equal to three-percent (3%) of the approved Purchase Price, (the ‘Break-Up Fee’), and (c) an expense reimbursement up to $150,000 (the ‘Expense Reimbursement’).” The motion continues, “A Qualified Bid for the Texas Property must be for a price that exceeds the Purchase Price set forth in the Purchase Agreement by at least $900,000 and under terms which the Debtors believe to be higher or better than the Stalking Horse Purchaser’s bid in cash; The bid must be accompanied by a deposit in an amount equal to at least $500,000….At the Auction, the minimum initial overbid must be, in the aggregate, at least $900,000 greater than the Starting Auction Bid, and subsequent bids must be, in the aggregate, at least $100,000 greater than the prior bid.”
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