Court approves VarTec's sale procedures for VarTec Europe

By Jeff Pines

Washington, Nov. 23 - The U.S. Bankruptcy Court for the Northern District of Texas approved VarTec Telecom Inc.'s proposed sale procedures of its VarTec Telecom Europe Ltd. and its stake in VarTec Telecom Belgium SPRL, according to an order filed Tuesday.

Ventolo Sverige AB is the stalking horse bidder, and is offering $6.5 million for the assets.

The Dallas-based telecommunications provider will hold an auction on Dec. 15 and hold the sale hearing on Dec. 17.

Competing bids are due by Dec. 13 and must start at $6.8 million. Subsequent bidding will be in $100,000 increments.

The break-up fee is $200,000 should someone other than Ventolo Sverige win the auction.

VarTec filed for bankruptcy on Nov. 1. Its Chapter 11 case number is 04-81694.

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