According to the U.S. Bankruptcy Court docket, GreenHunter Resources filed an expedited motion for entry of an order (a) approving sale and bidding procedures and bid protections in connection with the sale of assets; (b) authorizing the sale of assets free and clear of all liens, claims, encumbrances and other interests and (c) granting related relief.
The motion explains, “By this Motion, the Debtors seek authority to sell their Assets to the holder of their pre-petition senior secured debt, TCFII GH LLC (the ‘Stalking Horse Bidder’), in exchange for a credit bid pursuant to the terms contained in the Stalking Horse APA, subject to higher and better bids pursuant to the procedures….Subject to certain adjustments, Stalking Horse Bidder proposes to acquire the Assets for (i) a credit bid equal to $17,918,719 of pre-petition and estimated post-petition indebtedness (the ‘Acquisition Consideration’).”
The motion continues, “In particular, upon Court approval of the Bidding Procedures Order, if Stalking Horse Bidder is not selected as the Successful Bidder, the Debtors will be required to pay to the Stalking Horse Bidder a fee in the amount of three percent (3%) of the Acquisition Consideration contained in the Stalking Horse APA (the ‘Break-Up Fee’) to compensate the Stalking Horse Bidder and reimburse the Stalking Horse Bidder for its reasonable, actual out-of-pocket expenses incurred in connection with the negotiation, preparation, execution, delivery, and attempted performance under the Stalking Horse APA….The Stalking Horse Bidder’s obligation to close on the Stalking Horse APA is conditioned on entry of the Sale Order.”
An auction is scheduled for April 22, 2016 followed by an April 25, 2016 sale hearing, with objections due by April 14, 2016. The deadline for submitting a qualified bid is on April 21, 2016. Read more bankruptcy news.
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