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OCZ Technology trustee files objection to asset sale bid procedures
By Lisa Kerner
Charlotte, N.C., Dec. 13 - OCZ Technology Group, Inc.'s U.S. trustee, Roberta A. DeAngelis, filed an objection to the company's request for approval of its bid procedures and subsequent sale of its assets to Toshiba Corp. for a base purchase price of $35 million.
The debtors are seeking a breakup fee of $1.05 million and a buyer expense reimbursement of $750,000, according to the motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.
DeAngelis objects to the proposed breakup fee and expense reimbursement because Toshiba is the debtors' debtor-in-possession lender and stalking horse purchaser.
"As DIP lender, Toshiba does not require a breakup fee or expense reimbursement to induce it to bid," the filing said.
A hearing is scheduled for Dec. 19.
As previously reported, the sale agreement is subject to Toshiba's offer being accepted by the bankruptcy court as the highest and best offer after an auction process and other customary closing conditions.
Competing bids are due by 5 p.m. ET on Jan. 9. If more than one qualified bid is received, an auction will be held on Jan. 13. The minimum bid increment at auction will be $250,000.
OCZ is a Sunnyvale, Calif.-based producer of computer memory and components. The company filed for bankruptcy on Dec. 2. The Chapter 11 case number is 13-13126.
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