Indianapolis Downs seeks approval of procedures to sell all its assets

By Jim Witters

Wilmington, Del., June 7 - Indianapolis Downs, LLC is seeking approval of bid procedures for the sale of substantially all the company's assets, according to documents filed June 7 with the U.S. Bankruptcy Court for the District of Delaware.

The company - in conjunction with Fortress Credit Opportunity Advisors LLC and the ad hoc committee of holders of prepetition second-priority notes - is marketing the assets while pursuing a recapitalization transaction, in case the sale proves unsuccessful, court documents state.

"The debtors are pursuing this process simultaneously with a confirmation process for the plan in order to avoid delaying the recapitalization if an acceptable sale transaction cannot be completed," the motion states.

The debtors have received "multiple offers from parties interested in serving as a stalking horse bidder," but none of the bids were sufficient, the company states.

A hearing on the motion is scheduled for 9:30 a.m. ET on June 21.

Bid procedures

The proposed bid procedures include:

• Restructuring support parties are considered qualified bidders;

• Each bid, other than those from restructuring support parties, must be accompanied by a $25 million cash deposit;

• The deadline for submitting bids is 5 p.m. ET on July 20;

• If needed, an auction will be conducted on July 27;

• A baseline bid will be announced. Subsequent bids must be in increments of at least $5 million, unless the debtors reduce the amount to $2.5 million during the auction; and

• If a sale occurs, the hearing to approve the sale will be on Aug. 22.

Indianapolis Downs, a Shelbyville, Ind., racetrack, off-track betting and gaming company, filed for bankruptcy on April 7, 2011. Its Chapter 11 case number is 11-11046.

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