Liberty Medical sale procedures, $46 million stalking horse approved

By Kali Hays

New York, Oct. 8 – Liberty Medical Supply, Inc. obtained approval of bid procedures related to the sale of substantially all of its assets from the U.S. Bankruptcy Court for the District of Delaware, according to an attorney familiar with the case.

The company also received approval of stalking horse bidder Liberty Medical Operations, Inc.

The stalking horse bid includes a cash amount of $13 million along with the assumption of at least $33.5 million, resulting in a total purchase price of approximately $46.5 million.

If Liberty Medical Operations is not the high bidder for the assets, Liberty Medical Supply would pay it a $1.4 million breakup fee and reimburse up to $500,000 of its expenses.

Under the approved bid procedures, the deadline for competing bids will be 5 p.m. ET on Nov. 7. An auction will be held on Nov. 11, if necessary.

The first bid at the auction, other than the stalking horse bid, will be considered only if it exceeds the proposed purchase price by a minimum of the amount necessary to pay the bid protections and at least $300,000 in cash.

Subsequent bids must be made in minimum increments of $300,000.

Liberty Medical, a Port St. Lucie, Fla.-based health-care products home delivery provider, filed for bankruptcy on Feb. 15, 2013. The Chapter 11 case number is 13-10262.

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