Pipeline Data bid procedures approved; auction scheduled for Jan. 4

By Caroline Salls

Pittsburgh, Dec. 19 - Pipeline Data Inc. obtained court approval of the bid procedures for the proposed $8 million sale of substantially all of its assets to Applied Merchant Systems West Coast, Inc., according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

If Applied Merchant is not the high bidder at auction, Pipeline Data will pay it a $200,000 break-up fee and reimburse up to $150,000 of its sale-related expenses.

Competing bids are due by 4 p.m. ET on Dec. 28 and must equal or exceed the sum of the proposed purchase price, the amount of the break-up fee and expense reimbursement and a $100,000 initial overbid.

Subsequent bids at auction must be made in minimum increments of $100,000.

The auction will be held on Jan. 4. The sale hearing date was not included in the order.

Pipeline Data, a Brashear Falls, N.Y.-based credit card payment processing and merchant services company, filed for bankruptcy on Nov. 19. Its Chapter 11 case number is 12-13123.

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