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IdleAire granted approval of bid procedures for sale of substantially all assets
By Caroline Salls
Pittsburgh, May 28 - IdleAire Technologies Corp. obtained court approval of the bid procedures for the sale of substantially all of its assets, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.
The stalking horse bidder is IdleAire Acquisition Co., LLC, an entity affiliated with members of the company's majority secured noteholder group.
Under the sale agreement, IdleAire Acquisition will pay $10 million for the assets plus assumption of liabilities.
The portion of the purchase price not included in assumption of liabilities will be paid as a credit bid.
The company said the investors are providing up to $25 million of debtor-in-possession financing, hold a $3.7 million pre-bankruptcy claim secured by a lien of substantially all of the company's assets and have a right to direct indenture trustee Wells Fargo Bank to credit bid up to $320 million of the company's 13% discount notes.
Overbids are due on July 1, the auction must be held by July 3 and the sale hearing must be held by July 8. The purchase agreement requires the sale to close by July 18. The bid procedures order did not specify the auction and sale hearing date.
Initial overbids must be for the sum of the greater of the purchase price or all amounts owed under the DIP financing, plus the amount of the assumed liabilities, a $1 million break-up fee and $500,000 for expense reimbursement.
Bids at auction must be for at least $500,000 more than the previous bid.
All bids must include a 10% cash deposit.
Based in Knoxville, Tenn., IdleAire is a privately held research and development company that provides products and services for the long-haul trucking freight industry. The company filed for bankruptcy on May 12. Its Chapter 11 case number is 08-10960.
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